Your Palisades Federal Credit Union checking account has an outstanding benefit called Courtesy Pay. By August 15th, we might not be able to continue offering this great benefit to you unless we hear from you.

How does Courtesy Pay Benefit You?

• If you inadvertently overdraw your account, we have the option to cover your overdrafts; saving you the inconvenience and embarrassment of a returned or declined item, as well as the fee normally charged to you by merchants for items returned to them.
• When you don't have enough money to make a purchase or pay for something unexpected, such as a flat tire or an emergency doctors visit, our Courtesy Pay service can authorize your everyday debit card transactions.
• Many deposits you make into your checking account are not available for immediate use, and you cannot start using those dollars right away for everyday debit card purchases. Having Courtesy Pay may provide access to you when you need it.

Information on Overdrafts and Overdraft Fees

An overdraft occurs when your account does not have enough money to cover a transaction, but we pay it anyway.

We offer two different ways to cover your overdrafts:

1. Standard overdraft practices that come with your account, such as Courtesy Pay.
2. Overdraft protection plans, such as links to savings account and lines of credit (loans). These may be less expensive than our standard overdraft practices. Ask us for more information on these plans.

This notice explains our standard overdraft practice that comes with your account.

We will continue to authorize and pay overdrafts for the following types of transactions:

• Checks and other transactions made using your checking account number
• Automatic bill payments

We will not continue to authorize and pay overdrafts for the following types of transactions unless you ask us to:

• ATM transactions
• Everyday debit card transactions

Under our standard overdraft practices we will charge you a fee of $34.00 each time we pay an overdraft. Due to the new regulatory requirements, the Courtesy Pay service you currently have for ATM and everyday debit card transactions will only continue until August 15, 2010. Beginning then, we will not pay overdrafts on your ATM and everyday debit card transactions unless you ask us. If you do not opt-in, the transaction will not be paid, and no fee will be imposed. We may continue to pay overdrafts on your checks and automatic bill payments and impose a fee. Overdrafts are paid at our discretion. Payment of an overdraft is not guaranteed. If we do not authorize and pay an overdraft, your transaction will be declined and item returned unpaid. There is no limit on the total fees we can charge you for overdrawing your account. We can close your account if you have excessive overdrafts. You should ask us if you qualify for a program that may pay your overdrafts for less than the overdraft fee. Palisades Federal Credit Union disclaims all liability associated with overdraft protection plans, courtesy pay and any other service which automatically pays overdrafts.

To continue utilizing this service all you need to do is inform us by August 15th that you want to opt-in.