Overdraft Protection Options

Overdraft Protection and Overdraft Privilege

The Union Bank Company understand that unexpected overdrafts occur from time to time - Overdraft Coverage can help. When an item is presented to the Bank for payment, the Bank utilizes your Actual Balance, as defined below, to determine whether the account contains sufficient funds to pay such item without overdrawing your account. In situations where funds in your account are insufficient to cover the item, and depending on your specific elections and limits, the Bank may either pay the item and allow you to overdraw the account or return the item to the presenting party unpaid. For paid items, you will be assessed an NSF Paid Item Fee, subject to the limits and thresholds described below. For returned items, you will be assessed an NSF Return Item Fee, subject to the limits and thresholds described below. Items returned unpaid may be re-presented by the merchant or third-party payee for payment at a subsequent date, and the Bank will assess the balance in your account at the time of such re-presentment. As used in this disclosure, an "item" means any check, draft, ACH debit, debit card transaction, online or mobile banking transfer, automatic bill payment, teller withdrawal, or other instruction or order for the payment or transfer of funds from your account. We may use the terms "item" and "transaction" interchangeably throughout this disclosure.
The choice in yours. Consider these ways to cover overdrafts:
Service Cost
Overdraft Protection (link to another deposit account you have at The Union Bank Company)1 Transfers from a Savings or Money Market account - $5.00 fee per transfer.
Overdraft Protection Line of Credit1,2 Subject to fees and interest.
Overdraft Honor Standard or Extended Coverage $35.00 NSF Paid Item Fee, per item presented.*
 
1Call us at 800-837-8111, send us a secure message, or come by a branch to sign up or apply for these services; sit your local branch, or to sign up or apply for these services. 2Subject to credit approval. *Per item presented means each time an item is presented for payment by a merchant or other payee, including re-presentment.
 
Overdraft Protection applies to all transactions and may help prevent overdrafts by automatically transferring funds to your checking account from another account or line of credit you may have at The Union Bank Company for a fee or finance charge. Please note that overdraft lines of credit are subject to credit approval.
 
Overdraft Honor allows you to overdraw your account up to the disclosed limit for a fee to pay a transaction. Even if you have Overdraft Protection, Overdraft Honor is still available as secondary coverage if the other protection source is exhausted. Please review "What Else You Should Know" for other important information.
 
Transactions Covered with
Overdraft Honor
Standard Coverage
(No action required)
Extended Coverage
(Your consent required on consumer accounts)*
Checks X X
ACH - Automatic Debits X X
Recurring Debit Card Transactions X X
Online Bill Pay Items X X
Online or Mobile Banking Transfers X X
Teller Window Transactions X X
ATM Transactions
X*
Everyday Debit Card Transactions
X*
 
If you would like to select Extended Coverage for future transactions, call us at 800-837-8111:
  • Call us at 800-837-8111.
  • Visit any branch.
  • Complete a consent form and mail it to us at 1058 Progressive Drive, Columbus Grove, OH 45830
  • Send us a secure message.
 
*If you choose Extended Coverage on your consumer account, ATM transactions and everyday debit card transactions will be included with the Standard Coverage. If you already have Overdraft Honor Extended Coverage, it is not necessary to request it again. Business accounts automatically have Extended Coverage.
 
If you want to discontinue Overdraft Honor in its entirety, contact us at 800-837-8111 or send us a secure message.
 
  • A link to another account or line of credit may be less expensive than an overdraft. A single larger overdraft will result in one fee, instead of multiple smaller overdrafts. Use our mobile and online banking services to track your balance. For financial education resources, please visit www.mymoney.gov.
  • The $35.00 NSF Paid Item Fee that is charged if you overdraw your account is the same fee that is charged if an item is returned as unpaid (an "NSF Return Item Fee"). If multiple items overdraw your account on the same day, each item will be assessed an appropriate NSF Paid Item Fee or a NSF Return Item Fee of $35.00. All fees and charges will be included as part of the Overdraft Honor limit amount. Your account may become overdrawn more than the Overdraft Honor limit amount because of a fee.
  • There is a limit of 5 NSF Paid Item Fees and NSF Return Item Fees ($175.00) per day we will charge you for overdrawing your account. We will not charge an NSF Paid Item Fee if a consumer account is overdrawn by $20.00 or less.
  • Recipients of federal or state benefits payments who do not wish us to deduct the amount overdrawn and the NSF Paid Item Fee from funds that you deposit or that are deposited into your account may call us at 800-837-8111 to discontinue Overdraft Honor.
  • If an item is returned because the Available Balance (as defined below) in your account is not sufficient to cover the item and the item is presented for payment again by a merchant or other payee, The Union Bank Company (“we”) may charge a NSF Return Item Fee each time we return the item because it exceeds the Actual Balance in your account. Because we may charge a NSF Return Item Fee each time an item is presented, we may charge you more than one fee for any given item as a result of a returned item and re-presentment of the item. When we charge a NSF Return Item Fee, the charge reduces the Actual Balance in your account and may put your account into (or further into) overdraft. If, on re-presentment of the item, the Actual Balance in your account is sufficient to cover the item, we may pay the item and, if payment causes an overdraft, charge an NSF Paid Item Fee. We may use the terms “item” and “transaction” interchangeably.
  • This describes the posting order for purposes of determining overdrafts. Our general policy is to post credits before debits. On each business day, we generally process transactions in the following order: debit transactions performed by you or by us at the bank (smallest to largest dollar amount), telephone transfers (smallest to largest dollar amount), loan transfers (smallest to largest dollar amount), ATM withdrawals (smallest to largest dollar amount), ACH debits (smallest to largest dollar amount), checks (in numerical check order by check number), bank fees (smallest to largest dollar amount), and automatic transfers (smallest to largest dollar amount). Because of the many ways we allow you to access your account, the posting order of individual items may differ from these general policies. Holds on funds (described herein) and the order in which transactions are posted my impact the total amount of NSF Paid Item Fees or NSF Return Item Fees assessed. 
  • Overdraft Honor is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.
  • Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Terms and Conditions of Your Account. The total (negative) balance, including all fees and charges, is due and payable upon demand.
  • We may be obligated to pay some debit card transactions that are not authorized through the payment system but which we are required to pay due to the payment system rules, and as a result, you may incur fees if such transactions overdraw your account. However, we will not authorize debit card or ATM transactions unless your account’s Available Balance (including Overdraft Coverage Options) is sufficient to cover the transactions and any fee(s).
  • Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account (Extended Coverage) may result in you incurring NSF Paid Item Fees for transactions that we would otherwise be required to pay without assessing an NSF Paid Item Fee. However, this would allow us to authorize transactions up to the amount of your Overdraft Honor limit. If you consent to Extended Coverage on your consumer account, it will remain on your account until it is otherwise withdrawn.
Your account has two kinds of balances: the Actual (Ledger) Balance and the Available Balance.
  • We use your account's Actual Balance (sometimes called ledger balance) at the end of the business day to determine whether your account is overdrawn; that is, whether there is enough money in you account to pay for a transaction presented to us for payment. Holds placed on deposited funds (for example, check deposit holds) are deducted from your Actual Balance to determine the amount available to cover posted transactions. Your Actual Balance only includes transactions that have settled up to that point in time; that is transactions (deposits and payments) that have posted to your account. The Actual Balances does not include outstanding transactions (such as checks that have not yet cleared and electronic transactions that have been authorized but are still pending). The balance on your periodic statement is the Actual Balance for your account as of the statement date.
  • Your account's Available Balance consists of the Actual Balance plus or minus the amount of any holds and pending transactions that are known to us but have not yet posted to your account. We use your Available Balance only to determine whether to authorize certain transactions, such as an ATM withdrawals, a one-time debit card transaction, or any over-the-counter withdrawal. 
  • The balance used for paying checks,  ACH items, and recurring debit card transactions is your Actual Balance, minus any holds placed on deposited funds, plus the amount of the Overdraft Honor limit and any available Overdraft Protection.
  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Standard Coverage is your Available Balance plus any available Overdraft Protection but does NOT include the Overdraft Honor limit.
  • The balance used for authorizing ATM and everyday debit card transactions on accounts with Extended Coverage is your Available Balance plus any available Overdraft Protection and includes the Overdraft Honor limit.
  • Because your Available Balance reflects pending transactions and debit holds, your balance may appear to cover a transaction but later upon settlement it may not be sufficient to cover such transaction. In such cases, the transaction may further overdraw your account and be subject to additional NSF Paid Item Fees. You should assume that any item which would overdraw your account based on your Available Balance may create an overdraft. Note that we may place a hold on deposited funds in accordance with our Terms and Conditions of Your Account, which will reduce the amount in your Available Balance.
  • Please be aware that the Overdraft Honor amount is not included in your Available Balance provided through online banking, mobile banking or The Union Bank Company’s ATMs.
  • We will place a hold on your account for any authorized debit card transaction until the transaction settles (usually within two business days) or as permitted by payment system rules. In some cases, the hold may exceed the amount of the transaction. When the hold ends, the funds will be added to the Available Balance in your account. Temporary authorization holds reduce your Available Balance and may impact whether subsequent transactions are authorized. However, temporary authorization holds do not reduce your Actual Balance. We use your Actual Balance at the end of the business day to determine whether your account is overdrawn and whether NSF Paid Item Fess or NSF Return Item Fees apply. Therefore, a temporary authorization hold, by itself, will not cause an NSF Paid Item Fee or NSF Return Item Fee to be assessed.
  • Except as described herein, we will not pay items if the Actual Balance in your account (minus any holds placed on deposited funds and including the Overdraft Honor limit, if applicable) is not sufficient to cover the item(s) and the amount of any fee(s).
  • New consumer and business checking accounts will receive a $100.00 Introductory Overdraft Honor limit at account opening that will be increased to $500.00 after 30 days in good standing for consumer accounts or to $1,000.00 after 60 days in good standing for business accounts.
  • An Overdraft Honor limit of $500 will be granted to eligible consumer checking accounts opened at least 30 days in good standing.
  • An Overdraft Honor limit of $750 will be granted to eligible consumer checking accounts opened at least 30 days with direct deposits and in good standing.
  • An Overdraft Honor limit of $1,000 will be granted to eligible business checking accounts opened at least 60 days in good standing. 
  • Overdraft Honor may be reduced/suspended if you default on any loan or other obligation to us, your account becomes subject to any legal or administrative order or levy, or if you fail to maintain your account in good standing by not bringing your account to a positive balance within 32 days for a minimum of one business day. You must bring your account balance positive for at least one business day to have the full Overdraft Honor limit reinstated.






If you have any questions about Overdraft Protection or Overdraft Honor, please call us at 800-837-8111 or visit a branch.
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