Overdraft and Reg E

What You Need to Know About First Community Bank's
Overdraft Privilege Service

For Personal Accounts

Your account includes an Overdraft Privilege. The privilege is $100.00 during the first 35 days following account opening. On day 36 (review date), the privilege amount increases to $500.00. On day 61 (review date), the privilege amount increases to $700.00. If your review date falls on a Saturday, Sunday or federal holiday, the increase will be effective the next business day. At First Community Bank, we understand that sometimes circumstances occur that cause payments to be made when you have an insufficient balance in your account to cover the transaction.

An insufficient balance may result from:

A. The payment of checks, electronic funds transfers, in-person withdrawal, ATM withdrawal, debit card transaction, or other electronic means;

B. Payments authorized by you;

C. The return, unpaid, of items deposited by you;

D. The imposition of bank service charges; or

E. The deposit of items which according to Bank's Funds Availability Policy, are treated as not yet "available"or finally paid.

We are not obligated to pay any item presented for payment if your account does not contain sufficient collected funds. Transactions may not be processed in the order they occurred which can affect the total amount of overdraft fees incurred. Items will be considered for payment in the following order: 1) Debit card transactions; 2) ATM, teller checks, and other withdrawals authorized by you; 3) Checks (smallest to largest check amounts); 4) ACH and electronic items; 5) Bank fees. As long as you maintain your account in good standing, defined as: A) Make a deposit at a minimum of every 30 days; B) Bring the account to a positive balance every 45 days or less; C) There are no legal orders outstanding on your account; D) Account holder or holders are not in default on any loan obligation with First Community Bank, your account will be eligible for Overdraft Privilege.

Overdraft Privilege means that we will consider - as a discretionary courtesy or service and not a right of yours or an obligation on our part - approving your reasonable overdrafts caused by any payment method other than ATM transactions and every day debit card transactions. In order for us to consider approving and paying overdrafts caused by ATM and everyday debit card transactions, you must provide separate written consent. The amount of this discretionary service is limited as disclosed above. Whether your overdrafts will be paid or not is at our sole discretion, and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing as described above. Our normal fees and charges including, Returned Item and Overdraft (OD) fee, currently $32.00 per item, will be charged for transactions initiated for payment from your checking account that do not have sufficient collected funds. Our Returned Item and Overdraft (OD) fees will be included in and count against your assigned Overdraft Privilege limit.

We may refuse to pay an overdraft for you at any time, even though we may have paid overdrafts for you previously. You will be notified by mail of any nonsufficient funds paid or returned that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts, plus our Returned Item and Overdraft (OD) fee(s) that you owe us, shall be due and payable upon demand. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner and agent, if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus our Returned Item and Overdraft (OD) fee(s).

ACCOUNT FEES: Whether we pay or return a non-sufficient funds item, a flat per-item handling fee will be charged to your account as a Returned Item or Overdraft (OD) Fee, currently $32.00 per returned or overdraft item. More than one Returned Item or Overdraft (OD) fee may be charged per day, depending on the number of checks presented on, and other withdrawals made from your account.

LIMITATIONS: Available to consumer accounts (excluding Savings and Money Market accounts) for personal and household use. We may limit the number of accounts eligible for Overdraft Privilege to one account per household. The amount of this discretionary service is limited as disclosed above. Additionally, we reserve the right to not approve any overdrafts against your account until we can verify that your account is being maintained in good standing, as defined above. “Overdraft Privilege” may be discontinued at any time without prior notice.