Overdraft Services Disclosure

OVERDRAFT COVERAGE OPTIONS: For eligible checking accounts, we offer two types of Overdraft Privileges to cover overdrafts: Overdraft Transfer¹ and Courtesy Pay².

¹Overdraft Transfer: applies to certain types of transactions and may help protect your account from being overdrawn by automatically transferring funds to your checking account from your primary share account or line of credit³ in the event an overdraft occurs.

²Courtesy Pay – Standard Coverage: we will generally pay items, except ATM withdrawals and point-of-sale debit card transactions, that overdraw your account up to the Courtesy Pay Limit. The Standard Coverage Courtesy Pay is provided to all qualifying accounts⁴ unless you choose to decline it.

²Courtesy Pay – Extended Coverage: we will generally pay all items, including ATM withdrawals and point-of-sale debit card transactions, that overdraw our account up to the Courtesy Pay Limit. The Extended Coverage Courtesy Pay is not provided unless your accounts qualify for, and you have not opted out of, the Standard Courtesy Pay Coverage. For consumers accounts only, the Extended Courtesy Pay Coverage will not be provided unless you affirmatively opt-in by providing your consent.

Courtesy Pay Limit: We have established a combined limit for both the Standard Courtesy Pay Coverage and the Extended Courtesy Pay Coverage that will generally allow your account to be overdrawn up to a negative available balance of $1,500.00 (we refer to this limit as the "Courtesy Pay Limit"). However, in our discretion, we may pay items (and charge associated Paid Item/Courtesy Pay Fees) that cause your account to exceed the overdraft limit. In addition, even if an overdraft would be within your Courtesy Pay limit, we may still decide not to pay the overdraft for any reason.

Service	Cost
Overdraft Transfer from Share Account	No Charge
Overdraft Transfer from Line of Credit³	$10 per every $100 transferred
Courtesy Pay	$31 Courtesy Pay fee per each occurrence
Non-Sufficient Funds Fee	$31 overdraft fee per each occurrence

3 Line of Credit - subject to credit approval, interest rate charges, and certain restrictions may apply.

Transactions Covered with Courtesy Pay Privilege	Standard Coverage (No action required)	Extended Coverage (Your consent required)*
Checks	X Yes	X Yes
ACH - Auto Debits	X Yes	X Yes
Recurring Debit Card Payments	X Yes	X Yes
ATM Withdrawals	No	X Yes^*
Everyday Debit Card Purchases	No	X Yes^*

If you would like to select Extended Coverage for future transactions:

Call us at 800-821-5891
Login to online banking to opt-in/out,
Visit any branch, or
Complete the enclosed form and mail to
P.O. Box 30669,
Clarksville, TN 37040

*If you choose Extended Coverage, ATM withdrawals and everyday debit card transactions will be included with the transactions listed under Standard Coverage. If you already have Extended Courtesy Pay coverage, it is not necessary to request it again. Business accounts are automatically enrolled in Standard and Extended Coverage and may not unenroll.

For Consumer Accounts Only: You are not required to have this service on your account. Members who receive Social Security, federal direct deposit or any other entitlement benefit must opt-out if they do not want the Credit Union to apply those funds to pay an overdraft. You may opt-out of the Courtesy Pay Privilege by contacting us at 800-821-5891, login to online banking, visit any branch, or complete the enclosed form and mail to P.O. Box 30669, Clarksville, TN 37040.

With the Courtesy Pay Privilege we will, as a discretionary service and not as a right or obligation guaranteed to you, strive to pay your reasonable overdrafts when your account is in good standing and meets eligibility.

Eligibility for Courtesy Pay Privileges: Before an eligible checking account will qualify for the Courtesy Pay Privilege, all of the following qualification requirements must be met:

The account has been open for at least 30 days.
Your account is an eligible⁴ type.
You are not more than 30 days past due on any loan obligation to us.
You are not subject to any legal or administrative order or levy.
You are not currently a party in a bankruptcy proceeding.
You do not have a current outstanding balance in a negative balance recovery loan.
Your account is not currently overdrawn.
You have, at one time, deposited at least $300 into your account.
There is no hold on your account for any items which we are required by law to notify you.
We have not determined that improper activity is taking place in your account.
Your account is NOT classified as inactive or bad address on file (as evidenced by returned correspondence).
You do not have an unresolved prior loss with the Credit Union.

⁴ Ineligible Account Types: the following account types are not eligible for Courtesy Pay Privilege: Youth, Trust, Estate, Representative Payee, Uniform Transfer to Minor Account (UTMA), Organizational/Club, Conservator/Guardian, VA Federal Fiduciary, Teen, or Revoked Privileges.

Suspension of Courtesy Pay Privileges: We may, at our sole discretion, reduce or suspend your Courtesy Pay Privileges, without notice (unless otherwise required by law), if we become aware of any of the following:

You are more than 30 day past due on any loan obligation to us.
You are subject to any legal or administrative order or levy.
You are a party in a pending bankruptcy proceeding.
You have an outstanding balance in a negative balance recovery loan.
More than 30 days have passed since your account has had a positive available balance.
A hold has been placed on your account for any items, and we are required by law to notify you.
It appears that improper activity has taken place in your account.
We believe your account has become inactive or you have a bad address on file.
You have caused a loss to the Credit Union.

WHAT ELSE YOU SHOULD KNOW

Courtesy Pay Privilege Opt-Out: If you do not want to have Courtesy Pay Privilege, simply contact us and we will remove this benefit from your account. If you opt-out, you may still be charged our $31 returned item fee. Recipients of federal or state benefits payments may choose to pay the outstanding balance and the fee for overdrawing your account by stopping by our branches. If you do not wish us to deduct the amount overdrawn and the Courtesy Pay Fees for the overdraft from funds that you deposit or that are deposited into your account, please call us at (800) 821-5891.

Overdrafts: As further described in the Master Service Agreement Part 2, when the dollar amount of one or more items exceeds the available balance of your account, at our discretion and without notice to you, we may pay or return some or all of the items. If we pay such items, payment will result in a negative available balance on your account and create an overdraft. We may decide to pay an item if the available balance of your account is already negative depending on payment system rules. Each such payment will constitute an additional overdraft. The "available balance" means the amount of money in your account that you can use, withdraw, or transfer. The available balance may increase or decrease throughout the day based on the account activity. Any holds associated with your account reduce the available balance. Additional information regarding your available balance (and how you can obtain the available balance of your account) is provided in the Master Service Agreement Part 2 of your account. By providing your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring Courtesy Pay Fees for transactions that we would otherwise by required to pay without assessing a Courtesy Pay Fee. However, this would allow us to authorize transactions up to the amount of your Courtesy Pay Limit and may also help you avoid overdrafts in excess of your available balance. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.

Payment Order of Items: The Credit Union authorizes and pays transactions using the available balance in your account. Fortera Credit Union may place a hold on deposited funds in accordance with our Master Service Agreement Part 2 and Disclosures, which will reduce the amount in your available balance. The available balance for checks, ACH items, and recurring debit card transactions is comprised of the ledger balance, less any holds on deposited funds and any debit card holds, plus the amount of the Courtesy Pay Limit and any available Overdraft Protection. The available balance for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is the ledger balance, less any holds on deposited funds and any debit card holds, plus any available Overdraft Protection, but does not include the Courtesy Pay Limit. For accounts with the Extended Coverage, the Courtesy Pay Limit is included in the available balance for authorizing ATM and everyday debit card transactions. Please be aware that the Courtesy Pay Limit is not included in your available balance provided through online banking, mobile banking, or Fortera Credit Union's ATMs. Your available balance will be reduced by pending withdrawals, such as debit card transactions we have authorized and must pay when they are sent to us for payment. These pending withdrawals may be sent to us for payment at a later date. In some circumstances, these transactions may be paid into overdraft if other posted transactions or fees have reduced your balance before the pending transactions are presented for payment. Generally, we process items in the following order: 1) online ATM and point-of-sale (POS) transactions in the order they are received, 2) ACH transactions, in the order they are received on the day they are processed, 3) signature-based POS transactions, and 4) drafts/checks in numerical order on the day they are processed. Fortera Credit Union will place a hold on your account 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 hold may exceed the amount of the transaction (i.e., gasoline, hotel/rental car deposits, etc.). When the hold ends, the funds will be added to the available balance in your account. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, a Courtesy Pay Fee may be assessed.

Fees: There are certain fees for overdrafts and returned items that may apply to your account. (Please note: these fees apply to all accounts whether or not the account is eligible for or qualifies for one or both Courtesy Pay Privileges):

Fees for Overdrafts: If we pay an item that results in an overdraft on your account when the item is posted (including second or subsequent request for payment), we may charge a Courtesy Pay Fee of $31 per occurrence. For consumer accounts only, we will not charge Courtesy Pay Fees for overdrafts caused by ATM withdrawals or point-of-sale debit card transactions if you have not opted into our Extended Courtesy Pay Privilege. The $31 Courtesy Pay Fee that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid. There is no limit on the total Courtesy Pay Fees per day we will charge. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Courtesy Pay Fee or a Return Fee of $31. All fees and charges will be included as part of the Courtesy Pay Limit amount. Your account may become overdrawn more than the Courtesy Pay Limit because of a fee.

Fees for Returned Items: If we do not pay the debit transaction or item on your behalf and return the debit or item, we may charge you non-sufficient funds fees of $31 per occurrence. Pursuant to Nacha Operating Rules and Guidelines and other applicable laws, a debit or item may be presented for payment more than one time. We may charge you non-sufficient funds fees for each re-presentment of a debit or item, which means you may incur multiple non-sufficient funds fees if a debit or item is returned more than one time. For example, you write a check from your account with us. The check is returned for non-sufficient funds, and we may charge you non-sufficient funds fees. The same check is re-presented to us for payment, and the check is returned again for non-sufficient funds. We may charge you non-sufficient funds fees the second time the check is presented for payment and returned for non-sufficient funds. However, if a debit or item is properly coded as a re-presented item, per Nacha Operating Rules and Guidelines and other applicable laws, the Credit Union will not assess your account non-sufficient funds fees.

Courtesy Pay Privilege Limits: The Credit Union uses the age of account in days, number of deposits in last month, and total amount deposited in last month to determine the Courtesy Pay Privilege Limit amount on your account with a maximum cap of $1,500.00. The Courtesy Pay Privilege Limit amount can fluctuate on a daily basis based on the same criteria to determine the initial Courtesy Pay Privilege Limit amount.

Financial Education: The Credit Union believes that financial literacy and education helps members make informed decisions. Heightened awareness of personal financial responsibility helps members realize the benefits of responsible money management, understanding the process and the availability of help if problems occur. www.MyMoney.gov is the federal government's website that serves as the one-stop federal financial literacy and education programs, grants, and other information. If at any time you feel you need help with your financial obligations, please contact us at (800) 821-5891 or you may request a personal financial toolkit by calling 1-888-MyMoney.

Master Service Agreement: Your account agreement describes the duties, obligations, and rights of depositors authorized signatories and the Credit Union with regard to your deposit accounts. That account agreement is incorporated herein for all purposes as it if were set forth verbatim as to matters not directly addressed by this disclosure. Your account agreement and this disclosure shall be construed so as to minimize conflicts between them.

Liability: Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Master Service Agreements and Disclosures. The total (negative) balance, including all fees and charges, is due and payable upon demand. Checking accounts that remain consistently overdrawn may be closed and/or charged off. Closed and/or charged off accounts may be reported to ChexSystems which may have a negative impact on your ability to open future banking relationships. All deposits to overdrawn accounts are applied to the negative balance. Courtesy Pay Privilege is not designed to be used as a permanent solution for financial needs. The Credit Union monitors accounts for excessive use and we may remove Courtesy Pay Privilege if we believe you are not managing your account in a responsible manner which may harm you or the Credit Union. Furthermore, the Credit Union may request that you access your entire Courtesy Privilege Limit amount at one time (via ATM or in-branch) to limit the number of Courtesy Pay Fees that could be assessed on having to pay items that exceed your available balance.

Waiver: The Credit Union's forbearance from, or delay in, exercising any of the Credit Union's rights, remedies, privileges, or right to insist on your strict performance of any provisions of your account agreement, this Overdraft Services Disclosure, or any other provision relevant to your account, shall not be construed to be a current or future waiver of the Credit Union's rights, remedies, or privileges.

Remedy: You and the Credit Union agree that the exclusive remedy and forum for all disputes arising out of the Courtesy Pay Privilege or your or Credit Union's performance there under, except for matters you or Credit Union take to small claims court, is arbitration by an independent arbitrator pursuant to the applicable rules of the American Arbitration Association, except as prohibited by law.

Effective Date: All information listed in this disclosure is effective as of 1/2/2024.

WHAT YOU NEED TO KNOW ABOUT OVERDRAFTS AND OVERDRAFT FEES

An overdraft occurs when you do not have enough money (based on available balance) in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

We have standard overdraft practices that come with your consumer account. Business accounts are automatically enrolled in Standard and Extended Courtesy Pay Coverage and may not unenroll.
We also offer overdraft coverage options, such as a link to a share account and/or a link to a line of credit (consumer accounts only), which may be less costly than our standard overdraft practices. To learn more, ask us about these plans.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

We do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

We will not authorize and pay overdrafts for the following types of transactions without your consent:

ATM
Everyday debit card transactions

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.

What fees will I be charged if Fortera Credit Union pays my overdraft?

Under our standard overdraft practices:

We will charge you a Courtesy Pay fee of up to $31 each time we pay an overdraft
There is no limit on the total fees we can charge you for overdrawing your account.

What if I want Fortera Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions?

For Consumer Accounts Only If you want us to authorize and pay overdrafts on ATM and everyday debit card transactions, call 800-821-5891, complete the form below and present it at a branch or mail it to: P.O. Box 30669, Clarksville, TN 37040. You can also select your overdraft option by logging into Online Banking. You can revoke your authorization for Fortera Credit Union to pay these overdrafts at any time by any of the above methods. Your revocation must include both your name and your account number so that we can properly identify your account. Not applicable for non-consumer accounts.

Consumer Accounts Only

I do not want Fortera Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions

I want Fortera Credit Union to authorize and pay overdrafts on my ATM and everyday debit card transactions.

Declining Courtesy Pay Privilege

I do not wish to have any Overdraft Privilege on my account. I understand by declining Overdraft Privileges that items that would overdraw my account will generally not be paid and may be returned to the presenter. I further understand that, for business accounts, a Return Item/Insufficient Funds Fee of $31.00 will apply to each item that is returned, as outlined in the Rate and Fee Schedule.

Member Name:

Account Number:

Share ID Number:

Signature:

Date: