Three overdraft protection options are available on your checking account. Depending on the one you choose, you can choose coverage from your savings account, establish an open-end loan, or both. You will be notified by mail whenever your overdraft protection is accessed.
You may access your share savings account. If check(s) are presented for payment on an insufficient balance in your checking account, the available funds will be transferred, in $100 increments, from your primary share savings account into your checking account to cover the check(s) presented that day. Please note that the transfer will not reduce your balance below the required membership share and all applicable fees will be deducted from the available funds at time of transfer.
This type of transaction falls under Regulation D of the Board of Governors of the Federal Reserve System and is limited in frequency. You are allowed a total of six Regulation D transactions per calendar month. These transactions are without a signature and include overdraft protection transfers from shares, telephone transfers, telephone wire transfers, etc.
You may also access funds through an open-end loan. The available funds are transferred, in $100 increments, into your checking account from your open-end loan. The loan balance is increased by the amount transferred. The number of transactions is unlimited, but you are unable to exceed your established line of credit.
Your third option is to access the available funds in both your share savings and your open-end loan. You decide the order in which the accounts are accessed.