Kentucky Courtesy Discretionary Overdraft Policy
This service is not a line of credit. It is a discretionary service, and not a right or obligation guaranteed to the accounts within the program, where we may approve reasonable overdrafts including any applicable fees when the account is in good standing. Good standing may include, but is not limited to, any or all of the following criteria and is subject to change without notice: regular deposits to cover withdrawals and the account is not overdrawn 15 or more days per calendar month.
Initial discretionary overdraft service limit at account opening: $100
Eligibility criteria for an increase in your initial discretionary overdraft service $100 limit:
- Your account has been open at least 60 days
- You are making regular deposits to cover withdrawals consistent with your past practices
- Total monthly deposits in the last 60 day period of at least $1,000/month – Qualify for up to $500
- Total monthly deposits in the last 60 day period of at least $1,500/month – Qualify for up to $750
- Your account is not overdrawn 15 or more days per calendar month
- You are not in default on any loan or other obligation to Kentucky Bank
- You are not subject to any legal or administrative order or levy
We have adopted this discretionary overdraft policy to provide for the highest efficiency in managing customer overdrafts consistently and fairly. At our discretion, we may pay and permit transactions for items, including checks, ATM withdrawals, debit card transactions, preauthorized automatic debits, telephone-initiated transfers or other electronic transfers, when there are not sufficient available funds, up to a maximum of $750 total per account, although special arrangements or circumstances may change this amount. We cannot authorize or pay overdrafts for ATM or point-of-sale debit card transactions unless the account holder chooses to opt-in. If you do not authorize us to pay an overdraft on ATM and everyday debit card transactions, your transaction will be declined.
An Overdraft Fee will be assessed for each item that is paid for which sufficient funds are not available in the account to cover the item amount when it is processed each evening. There is no limit on the total fees we charge for paying your overdrafts. However, there is a daily limit on the number of items for which a fee will be assessed. An overdrawn account fee (Extended Overdraft Fee) will be assessed for every five business days you remain overdrawn. Please refer to the fee schedule.
Although subject to change without notice, it is our current practice to process account activity each evening for items received prior to the daily cut off time. We sort items for processing first by transaction type in the following order: ATM withdrawals, debit card transactions, pre-authorized debit transactions, telephone-initiated transfers, other electronic transactions and paper-based checks or drafts. Within electronic transaction types, items are processed by the daily funds requested in amount order: lowest dollar to highest dollar. Within check transaction types, items are processed by the daily funds requested in check number order: lowest number to highest number. For example, if we receive two checks for payment and two debit card transactions in the same day, the smallest debit card transaction will be paid first, followed by the second debit card transaction; then, the smallest check number will be paid, followed by the second check. The account balance is adjusted as each item is processed for the amount of the item, if the item is paid, and/or any applicable Overdraft Fee that is charged. An Overdraft Fee may be charged for each item if the amount of the item is greater than the adjusted account balance at the time it is processed.
We are not obligated to pay any item presented for payment if your account does not contain sufficient collected (available) funds, and any discretionary payment of any non-sufficient fund item does not obligate us to pay any additional non-sufficient fund item or to provide prior written notice of our decision to refuse to pay any additional non-sufficient fund item.
If an item is processed for payment and we create an overdraft, pursuant to the Depositor’s Account Agreement, you agree to pay us the amount of any overdraft and applicable fees, as published, immediately, without notice or demand from us, unless you otherwise specify that you wish all non-sufficient fund items returned, upon which you agree to pay us the amount of any applicable fee. Each account holder is jointly and severally responsible under the Depositor’s Account Agreement for paying any overdraft amounts.
It is our policy to operate in accordance with all applicable safety and soundness standards. Federal and State laws, particularly the Uniform Commercial Code, unless modified or amended by the Depositor’s Account Agreement, controls the duties, obligations and rights of the Depositor, the Authorized Signatories and the Financial Institution with regard to your checking account. The Depositor’s Account Agreement terms shall control any possible conflict, if any, between any provision of this overdraft policy and the Depositor’s Account Agreement.
If you do not wish to be included under this policy and would prefer to have your non-sufficient fund items returned and/or denied, please call 1 (800) 467-1939. A Returned Item Fee will be assessed for each item returned.