BankGloucester offers customers that qualify a discretionary overdraft protection service we call our Overdraft Privilege Service (ODP). The benefit of the service is that the bank may automatically pay checks or payments into the overdraft instead of returning them marked Insufficient Funds. This service is not a guarantee, or line-of-credit; but an understanding that the bank will usually pay the checks or payments into the overdraft. The bank does retain the right to return any item and cancel the service at any time. For more details, check the general description of the ODP Terms that follows.

In addition, you may request (Opt-In) that any ATM or everyday debit card transactions be covered by any Overdraft Privilege Service in place for your designated account.

After we receive your request, we will review your account history to determine if your account meets our good standing minimum requirements (see Account Qualification section). If so, we will notify you of the approval and the ODP limit assigned to your account. You may decline the Overdraft Privilege Service at any time by (1) completing the section at the bottom of your approval letter, or (2) phoning (978) 283-8200 and speaking to any available Customer Service Representative.


The benefit to the customer is that by paying the checks/debits instead of returning them, they will not have to pay retailer bounced check fees as well as avoid the embarrassment and extra efforts to resolve the returned checks. The bank will still charge an insufficient funds fee on the checks/debits it pays, but the customer would not be charged another insufficient funds fee for a check that may be rerun against insufficient funds. Therefore, this service is of great value to those customers that inadvertently make an error by issuing a check with insufficient funds that could result in a cascade of insufficient fund items or insufficient funds fees since the banks overdrawing of the account would eliminate this situation.

The bank will review the accounts history to determine if it qualifies as an account in good standing according to the banks internal rating standards. In general, we will strive to pay overdrafts up to an assigned limit in your account as long as you maintain your account in good standing. We may rely on factors such as: (A) your account has been open at least 30 days; (B) you make regular deposits of at least $400 or more within any thirty day period; (C) you are not in default on any loan obligation to BankGloucester; (D)if we pay checks into the overdraft, you bring your account to a positive balance at least once every month; (E) your account is not the object of any legal or administrative order or levy; (G) other special transactions such as charge-backs or unusual activity. Once approved, we will consider, without obligation on our part, approving your reasonable overdrafts, including our fees, up to the assigned limit. If we terminate the service, we will also let you know. We will notify you when your account is eligible for this Discretionary Overdraft Service and to the amount of overdraft privilege that may be available for your personal or business checking account.

Insufficient funds Charges 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 BankGloucesters 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 available funds. Rather than automatically returning, unpaid, any insufficient funds items that you have we may pay these items and create an overdraft (negative) balance in your account which you will be expected to repay the bank.

We may refuse to pay an overdraft for you at anytime, 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 insufficient 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 insufficient funds fee 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 (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 insufficient funds fees.

Optional Overdraft Protection Service: We offer an alternative Overdraft Protection Service if you have another account with BankGloucester from which to transfer funds: i.e. Savings Account, Money Market Accounts or other checking accounts.

Ineligible Accounts and Limitations: Available only for eligible checking accounts that are maintained in good standing and defined above, Savings Accounts, Money Market Accounts, Public Funds, Charitable Organization Accounts, Trust Accounts, Minor Accounts are not eligible for this service. We may limit the number of accounts eligible for this service to one per household and/or one account per taxpayer identification number.

Eligible Account Types: The account types that are eligible for this privilege are: Personal Checking Accounts primarily used for personal or household purposes.

You May Always Cancel: You may choose at any time to cancel this service by notifying one of our Customer Service Representatives who will explain what this means and the potential consequences for you. The Overdraft Privilege Service does not constitute an actual or implied agreement between you and BankGloucester, nor does it constitute an actual or applied obligation of or by BankGloucester. 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 at any time without prior notice or reason or cause


ACH/Bill-Pay items:
Largest deposits followed by smaller deposits, then smaller withdrawals followed by largest withdrawals.

In clearing/Check Items:
Lowest to highest check amount, smallest withdrawals to largest withdrawals.

Debit Card/POS Transactions:
please refer to the Terms and Conditions of your Account Disclosure.

ATM Withdrawals/Deposits:
please refer to the Terms and Conditions of your Account Disclosure.

On-line/Telephone transfers:
Post at the time of transfer, unless future-dated.

What you Need to Know about Overdrafts and Overdraft Fees
An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway.
We can cover your overdrafts in two different ways:

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:

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

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 BankGloucester pays my overdraft?

Under our standard overdraft practices:

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

If you want to authorize BankGloucester to pay overdrafts on ATM and everyday debit card transactions, you must give specific consent by completing the appropriate section on Page 1 of this document.
You may also call (978)283-8200 and speak with a Customer Service Representative.

Note: This disclosure is based on the A-9 Model Consent form for Overdraft Services (§ 205.17) under the Reg E Amendment Final Rule approved 11/12/2009 with the mandatory compliance by 7/1/2010.

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