Overdraft Policy

It is the policy of Guadalupe Bank (“the bank”, “we”, “us”, or “our”) to comply with applicable laws and regulations, and to conduct business in accordance with applicable safety and soundness standards.

An overdraft (negative) balance in your account may result from; A) The payment of checks, electronic funds transfers, or other withdrawal requests; B) Payments authorized by you; C) The return, unpaid, of items deposited by you; D) Our Fees/Charges; E) The deposit of items which according to our 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. Rather than automatically returning, unpaid, any nonsufficient funds items that you may have, we will consider, without obligation on our part, approving your reasonable overdrafts as a purely discretionary overdraft privilege.  This is referred to as the “standard overdraft practices” that come with your account and is formally known as our “Courtesy Pay” service.  You may decline this discretionary service at any time.

We may refuse to pay an overdraft for you at any time, even if your account is in good standing and even though we may have previously paid overdrafts for you. You will be notified by mail of any non-sufficient funds items 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 Non-Sufficient Funds (NSF) and/or 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, presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts plus our NSF and/or OD fee(s).

NON-SUFFICIENT FUNDS (NSF) & OVERDRAFT (OD) FEES:  We will charge you an OD fee of $33.00 each time we pay an overdraft on your account.  We will charge you an NSF fee of $33.00 for each item presented for payment to your account that we return unpaid due to non-sufficient funds in your account.  More than 1 such fee may be assessed on your account per day.  There is a daily limit of $198.00 on the total NSF and/or OD fees that we can charge you.  Multiple NSF and/or OD Fees may be charged for a single item that is presented more than once for payment against non-sufficient funds in your account. For example, if an item is presented for payment against non-sufficient funds in your account, and we return that item unpaid, you will be charged an NSF Fee of $33.00 for that item.  If the same item is re-presented for payment against non-sufficient funds in your account at a later date, and we return that item unpaid, you will be charged an NSF Fee of $33.00 for that item.

ELIGIBLE ACCOUNT TYPES: The account types that are eligible for our “Courtesy Pay” service are (A) Simply Free Checking (B) Premium 50 Interest Checking (C) Direct Interest Checking and (D) Platinum Interest Checking.

LIMITATIONS: Savings Accounts, Money Market Accounts, Public Funds, Charitable Organizations, and Minor Accounts as not eligible for our “Courtesy Pay” service. We may limit the number of accounts eligible for “Courtesy Pay” to one account per household and/or one account per tax-payer ID.

ELIGIBLE TRANSACTION TYPES: Each transaction/item initiated for payment against your checking account(s) may be processed by us using your assigned “Courtesy Pay” service limit, including Checks, ACH transactions, Electronic Items, & all other withdrawals except ATM transactions and one-time debit card transactions.

ATM AND ONE-TIME DEBIT CARD TRANSACTIONS: We do not authorize and pay overdrafts for ATM transactions and one-time debit card transactions unless you ask us to.  Prior to paying and assessing a fee for ATM and one-time debit card transaction overdrafts, the bank will provide you with the opportunity to opt-in, or affirmatively consent to, the bank’s overdraft service for ATM and one-time debit card transactions for each account. This is formally known as our “Courtesy Pay Plus” service.  Should you choose not to participate in our “Courtesy Pay Plus” service any time after initially opting-into the service, you may opt-out by notifying the bank via U.S. mail, through the bank’s website, by telephone, or in person.

ALWAYS A DISCRETIONARY SERVICE: Our “Courtesy Pay” and “Courtesy Pay Plus” services do not constitute an actual or implied agreement between you and us. Nor does it constitute an actual or implied obligation of ours or by us. These services represent a purely discretionary privilege or courtesy that we may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.

YOUR RIGHT TO DECLINE AND OPT-OUT OF “COURTESY PAY” AND “COURTESY PAY PLUS” SERVICES: You have the right to decline “Courtesy Pay” services that come with your account at any time.  You also have the right opt-out of “Courtesy Pay Plus” and revoke your consent to the payment of ATM and everyday debit card transactions at any time.  To decline or opt-out of either or both of these services please visit your local branch, write to us at 1309 Bandera Hwy Kerrville, TX 78028, or call us at (830) 792-1950.

OPTIONAL OVERDRAFT PROTECTION SERVICES: You may set up overdraft protection for your account via a funds transfer from another designated deposit account held at Guadalupe Bank.  This is formally known as our “Courtesy Transfer” service. By using this service, you may save money on NSF & OD fees you pay us for items presented for payment on your account.

DISCLOSURES: You will be provided with a disclosure of the fees and a list of types of transactions for which an overdraft fee may be imposed at the time your account is opened.  You will be notified should there be a change in the fees or transactions listed in the disclosure.  You will also receive a periodic statement disclosure which will provide information about the total amount of NSF & OD charges imposed on your account for the statement period and calendar year to date.

NEGATIVE ACCOUNT BALANCES: The bank may immediately terminate “Courtesy Pay” and “Courtesy Pay Plus” services on your account if you fail to pay any negative balance amounts upon demand. The bank may close your account any time after we provide you with written notice of your negative account balance.

ADVERTISING OVERDRAFT LIMITS & BALANCE INQUIRIES: The bank will not publish the available overdraft limit or indicate the dollar amount of overdraft funds available in your account in any advertisement, newsletter, periodic statement, or balance inquiry returned to you.

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 a customer service representative at (830) 792-1950 or stop by your nearest branch.