Discretionary Overdraft Privilege Policy
  

It is the policy of Crosby State Bank to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

The Deposit Account Agreement and Disclosure provided to you at the time you opened your account with us controls the duties, obligations and rights of the Depositor, the Authorized Signatories and Crosby State Bank with regard to your checking account. The Deposit Account Agreement (and all amendments thereto) and its terms shall control any possible conflict, if any, between any provision of this Discretionary Overdraft Privilege Policy and the Deposit Account Agreement and Disclosure. A copy of the Deposit Account Agreement and Disclosure is available to you on request from your Crosby State Bank officer.

Overdraft privilege is not a line of credit. However, if you inadvertently overdraw your account, we will have the discretion to pay the overdraft, subject to the limit of your overdraft privilege and the amount of the overdraft fee. Should an overdraft occur, your account will be charged the standard “Overdraft” fee of $30.00 for handling each item paid by the discretionary overdraft privilege.  Overdraft fees apply to items created by check, in person withdrawal, ATM, or other electronic means and paid into the overdraft by the bank.  If multiple items are presented against your account on the same day and paid into the overdraft, each item will be assessed the overdraft fee. Crosby State Bank is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Any discretionary payment by Crosby State Bank of an overdraft check or item (such as withdrawals from an ATM or by any other electronic means) does not obligate Crosby State Bank to pay any another overdraft check (or item), or to provide prior notice of its decision to refuse to pay such check (or item).  If Crosby State Bank does not pay your item into the overdraft the bank will charge an “Insufficient Funds (NSF)” fee of $30.00 for handling each item drawn against insufficient funds and returned to the payee. NSF fees apply to insufficient items created by check, in person withdrawal, ATM, or other electronic means. If multiple items are presented against your account and returned on the same day, each item will be assessed the NSF fee

Pursuant to Crosby State Bank’s commitment to always provide you with the best level of service, now and in the future, if your consumer account (primarily used for personal and household purposes) or commercial account has been open for at least sixty (60) days and thereafter you maintain your account in good standing, which includes at least:

1. Bringing your account balance to a positive balance within every thirty (30) day period for a minimum of 24 hours;
2. Not being in default on any loan or other obligation to Crosby State Bank and
3. Not being subject to any legal or administrative order or levy,

Crosby State Bank will have the discretion to pay overdrafts within the overdraft privilege limits, but payment by Crosby State Bank is a discretionary courtesy and not a right of the customer or obligation of Crosby State Bank. If the above conditions are not met, your Overdraft Privilege will be removed and any insufficient items will be returned and charged an non-sufficient item fee. This privilege for consumer checking or savings accounts will generally be limited to a maximum of $400 or $500 overdraft (negative) balances. This privilege for commercial accounts will generally be limited to a maximum of $500 or $1,000 overdraft (negative) balance. Of course, any and all fees and charges, including without limitation the overdraft fees or the non-sufficient funds fees (as set forth in our fee schedules and deposit account agreement and disclosure), will be included as part of this maximum amount.

The total of the discretionary overdraft privilege (negative) balance, including any and all fees and charges, including all overdraft fees and non-sufficient fund fees are due and payable upon demand, and Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Deposit Account Agreement and Disclosure with a maximum repayment period of 30 days.

Again, while Crosby State Bank will have the discretion to pay overdrafts on accounts in good standing (as described above) payment is a discretionary courtesy, and not a right of the customer or obligation of Crosby State Bank and Crosby State Bank in its sole and absolute discretion, can cease paying overdrafts at any time without prior notice of reason or cause.