(A Discretionary Overdraft Service)

It is the The Vernon Bank’s policy to comply with applicable laws and regulations, and to conduct business in accordance with applicable safety and soundness standards. 

A non-sufficient funds balance may result from: A) The payment of checks, electronic funds transfers, or other withdrawal requests; B) Payments authorized by you; C) The return, unpaid, of items deposited by you; D) The imposition of bank service charges; or E) 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 (primarily used for personal and household purposes) has been open for at least thirty (30) days and thereafter you maintain your account in good standing, which includes at least: (A) Continuing to make deposits consistent with your past practices, and depositing at least $300 or more in your account within each thirty (30) day period, (B) You are not in default of any loan obligation to The Vernon Bank, (C) You bring your account to a positive balance (not overdrawn) at least once every thirty (30) days, and (D) Your account is not the subject of any legal or administrative order or levy, we will consider approving your reasonable overdrafts.  This discretionary *service will generally be limited to a $400 overdraft (negative) balance for Free checking accounts or a $700 overdraft (negative) balance for other eligible personal checking accounts.  Of course, any and all bank fees and charges, including without limitation our non-sufficient fund/overdraft fee of $28.00 per item (as set forth in our fee schedules) will be included in this limit.  (For example, an account with a balance of $100 and an Overdraft Privilege limit of $700 may be considered to have $800 available from which to post checks, other authorized transactions, and fees, including Non-Sufficient Funds and/or Overdraft (NSF/OD) Charges.) 

We may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you.  You will be notified by mail of any non-sufficient funds items paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item.  The amount of any overdrafts plus our Non-Sufficient Funds and/or Overdraft (NSF/OD) Charges that you owe us shall be due and payable upon demand.  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 Non-Sufficient Funds and/or Overdraft (NSF/OD) Charges. 

If you do not want us to overdraw your account under any circumstances even as a courtesy to clear an item that you have written, you must tell us not to do so.  You understand that it may be a crime to write a check you know will not be paid.  If your account receives a monthly direct deposit benefit check, such as Social Security or VA Disability, from the United States government and you do not want us to use funds in that account to pay an overdraft, you must tell us.  If you do not tell us, you consent to allowing us to apply those funds to repay your overdrafts.  Our Fee Schedule states the fee charged for paying your overdrafts. 

LIMITATIONS:  Available only to eligible personal checking accounts primarily used for personal and household purposes.  (Business accounts, Money Market and Savings accounts, and Public Funds accounts are not eligible.)  We may limit the number of accounts eligible for the Overdraft Privilege* service to one account per household. 

ACCOUNT FEES:  Whether we pay or return a Non-Sufficient Funds item, a flat per-item handling fee will be charged to your account as a Non-Sufficient Funds or Overdraft (NSF/OD) Charge of $28.00 per item(s), as set forth in our common fee schedule. 

TYPES OF TRANSACTIONS:  Listed below are types of transactions that could cause an overdraft and trigger a Non-Sufficient Funds and/or Overdraft (NSF/OD) Charge.


  ATM Withdrawals

  Debit Card Transactions

  Automatic debits/withdrawals/transfers

  Debits/withdrawals/transfers received through the Automated Clearing House (ACH)

*The Overdraft Privilege service does not constitute an actual or implied agreement between you and the Bank.  Nor does it constitute an actual or implied obligation of or by the Bank.  This service represents a purely discretionary courtesy or privilege that the Bank may provide to you from time to time and which may be withdrawn or withheld by the Bank at any time without prior notice or reason or cause.