American Gateway Bank

Discretionary Overdraft Privilege Policy

It is the policy of American Gateway 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 American Gateway 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 American Gateway Bank customer service representative.

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.  American Gateway Bank is not obligated to pay any item presented for payment if your account does not contain sufficient available funds.  Any discretionary payment by American Gateway Bank of an overdraft check (or items, such as ATM withdrawals) does not obligate American Gateway Bank to pay any other overdraft check (or item), or to provide prior notice of its decision to refuse to pay such check (or item). 

Pursuant to American Gateway 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) has been open for at least thirty (30) days, or if your commercial account has been open for at least sixty (60) days, and thereafter you maintain your account in good standing, which includes at least:

A) Bringing your account to a positive balance within every thirty (30) day period for a minimum period of 24 hours;

B) Not being in default on any loan or other obligation to American Gateway Bank and

C) Not being subject to any legal or administrative order or levy.

American Gateway Bank will have the discretion to pay overdrafts within the overdraft privilege limits, but payment by American Gateway Bank is a discretionary courtesy and not a right of the customer or an obligation of American Gateway Bank.  This privilege for consumer checking accounts will generally be limited to a maximum of $500 overdraft (negative) balance ($750 for accounts with direct deposit) for One-on-One FREE Checking accounts and Senior Citizen Checking accounts, $700 overdraft (negative) balance ($950 for accounts with direct deposit) for Gateway Checking accounts and NOW account.  This privilege for commercial will generally be limited to a maximum of $1,500 overdraft (negative) balance. Of course, any and all fees and charges, including without limitation 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.  It may be possible that your account will become overdrawn in excess of the overdraft privilege amount as a result of the assessment of a fee.

The total of the discretionary Overdraft Privilege (negative) balance, which includes any and all fees and charges, including all non-sufficient funds/overdraft fees is 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.  Our standard NSF fee of $30 will be imposed for overdrafts created by checks, ACH, Point-of-Sale, ATM withdrawals, in-person withdrawals, or by other electronic means.  If your account balance remains overdrawn for longer than three [3] days, we will charge your account a daily overdraft fee of $3.00 for each of the consecutive business days the account remains overdrawn, beginning with day four.  Transactions may not be processed in the order in which they occurred, and the order in which transactions are received and processed may impact the total amount of fees incurred.

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

For our consumer customers, American Gateway Bank will not pay overdrafts for ATM or everyday debit card transactions unless American Gateway Bank has provided you with the notice required by section 205.17(b) of Regulation E and you have opted in to the payment of these overdrafts.  In order to avoid overdrafts due to ATM and everyday debit card transactions, American Gateway Bank will place a hold on your account for any ATM or everyday debit card transaction authorized until the transaction settles.  ATM and everyday debit card transactions usually settle within two business days after the transaction is authorized.  The amount of the hold will be for the amount authorized, or as permitted under applicable payment network rules.  Holds on authorized ATM and everyday debit card transactions will be removed prior to settlement where required by applicable payment network rules.  In addition, for both consumer and commercial accounts, you may opt out of the Overdraft Privilege services for check, ACH and debit card bill payment transactions at any time by contacting one of our customer service representatives.

OPTIONAL OVERDRAFT PROTECTION SERVICES:You may apply for overdraft protection from an established line of credit account and/or funds transfer from a designated asset account. If you qualify for these services, you may save money on the fees/charges you pay us for overdraft protection.

CUSTOMER OPT-OUT:Although you are not charged for using Overdraft Privilege unless you have an overdraft, you may opt out of Overdraft Privilege at any time. Accountholders receiving direct deposit of their monthly Social Security payment into their checking account must advise the Bank in writing to stop paying overdrafts with these funds.  This will require the accountholder to opt out of the Overdraft Privilege service.  If you would like to have this service removed from your account, please contact us in writing at: American Gateway Bank, Bookkeeping Department, P. O. Box 500, Port Allen, LA 70767.

IF YOU NEED HELP:Of course, overdrafts should never be used to finance ordinary or routine expenses-and you should not rely on overdrafts to cover these expenses. If at any time you feel you need help with your financial obligations, please contact one of our customer service representatives at any of our ten locations or call (225) 382-9261.

I have read and AGREE to the above disclosures.

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