Overdraft Coverage

If you would like to select Extended Coverage for future transactions:

• Call us at (808) 935-2969

• Complete the online consent form found at www.hawaiicountyfcu.com

• Visit our branch

• Complete the enclosed consent form and mail it to us at 131 Puuhonu Way, Hilo, Hawaii 96720

• Email us at info@hawaiicountyfcu.com

If you choose Extended Coverage, ATM withdrawals, and everyday debit card transactions will be included with the transactions listed under Standard Coverage.

You can discontinue the Courtesy Pay in its entirety by contacting us at (808) 935-2969 or sending us an email at info@hawaiicountyfcu.com.

WHAT ELSE YOU SHOULD KNOW

• A link to another account or a line of credit is a less expensive option than an overdraft. A single larger overdraft will result in just one fee, as opposed to multiple smaller overdrafts. Good account management is the best way to avoid overdrafts. Use our mobility app, virtual branch, and telephone banking services to keep track of your balance.

• The $20 Overdraft Fee is the same fee amount that is charged if a check is returned as unpaid. If multiple items overdraw your account on the same day, each item will be assessed an appropriate Overdraft Fee or a Return Fee of $20. All fees and charges will be included as part of the Courtesy Pay limit amount. Your account may become overdrawn in excess of the Courtesy Pay limit amount as a result of a fee.

• We generally post items in the following order: 1) credits, 2) ATM and debit card transactions (in the order received), 3) ACH debits (low to high by dollar amount, and 4) checks (check number order); however, exceptions will occur. Holds on funds (described below) and the order in which transactions are posted may impact the total amount of Overdraft Fees or Return Fees assessed.

• Although under payment system rules, Hawaii County Employees Federal Credit Union may be obligated to pay some unauthorized debit card transactions, Hawaii County Employees Federal Credit Union will not authorize debit card or ATM transactions unless there are available funds (including Overdraft Coverage Options) to cover the transactions and any fee(s).

• Giving us your consent to pay everyday debit card and ATM overdrafts on your consumer account may result in you incurring Overdraft Fees for transactions that we would otherwise be required to pay without assessing an Overdraft Fee. However, this would allow us to authorize transactions up to the amount of your Courtesy Pay limit and may also help you avoid overdrafts in excess of your available funds that could result in the restriction of your debit card.

• Hawaii County Employees Federal Credit Union authorizes and pays transactions using the available balance in your account. The available balance is comprised of the ledger balance (collected funds) less any debit card holds and does not include any deposited funds on hold. Hawaii County Employees Federal Credit Union may place a hold on deposited funds in accordance with our Member Service Agreement. If the funds in the available balance are not sufficient to cover a transaction, any available Overdraft Protection and/or the amount of the Courtesy Pay limit may be used to authorize and pay a transaction.

• Please be aware that the Courtesy Pay amount is not included in your balance provided through our virtual branch, mobility app, or Hawaii County Employees Federal Credit Union’s ATMs.

• Hawaii County Employees Federal Credit Union 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. If your account is overdrawn after the held funds are added to the available balance and the transaction is posted to the available balance, an Overdraft Fee may be assessed.

• Except as described in this letter, Hawaii County Employees Federal Credit Union will not pay items if your account does not contain available funds (including the Courtesy Pay limit) to cover the item(s) and the amount of any fee(s).

• We may restrict your debit card use if you incur overdrafts in excess of the available funds in your account, including any Courtesy Pay limit. If you use your debit card for recurring payments, e.g., utilities, and your debit card is ever suspended, these transactions will be declined or returned to the payee(s). You will need to make other arrangements to make these payments to the payee(s).

• Courtesy Pay is not a line of credit; it is a discretionary overdraft service that can be withdrawn at any time without prior notice.

• Courtesy Pay may be discontinued 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 thirty-two (32) days for a minimum of one business day.

• Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all overdraft and fee amounts, as described in the Member Service Agreement. The total (negative) balance, including all fees and charges, is due and payable upon demand.

If you have any questions about Overdraft Protection or Courtesy Pay, please call us at (808) 935-2969 or visit our branch.

Your Available Balance & Actual Balance in Accounts with Us

The checks you write and the electronic fund transfers (EFTs) you authorize are paid based on the available balance of funds in the checking account you have with us, and not on the actual balance of funds in that account. Your actual balance is the total amount of funds in an account with us based on the deposits and withdrawals you have made to the account at that time. However, not all of your actual balance may be available for your use because of your outstanding purchases, payments or check deposits that have not cleared the account yet. We refer to the funds in the account that are immediately available for your use as your "available balance." Your available balance is generally equal to the actual balance, less the amount of funds held for your 1) recent deposits, 2) pending transactions such as debit card purchases, or 3) other reasons. If your check, EFT or other debit transaction is for an amount larger than your available balance, we will treat it as presented against insufficient funds and may not pay it even fi your actual balance exceeds the amount of the check, EFT or other debit transaction. Again, not all of the actual balance is available for payment because some or the entire amount of funds in the account may be held or committed to pay your outstanding purchases or payments, or may be held for other reasons. Please see Provision 6.i. of the MSA Part 2 for further information.

The Order Checks, EFTs & Other Debits Transactions are Paid

In general, we pay the checks you write and EFTs you authorize in the order they are presented to us for payment, regardless of when you issued or authorized them. Your checks and EFT debits presented in data files are paid when we process the data file. Your checks in the same data file are processed in the order explained in Provision 6.j. of the MSA Part 2, whereas checks presented at our branch are processed at the time of payment. Your debit card transactions (EFTs) are processed when transmitted to u s by your merchant or its processor, which may be immediately or days later. You understand your merchant or its processor determines when your transaction is transmitted to us; we do not make that decision. When you authorize your debit card purchase with a merchant, we may place a temporary hold on your funds in the account for the amount specified by the merchant. Often with restaurant, gas station, hotel, car rental and certain other transactions, the hold on funds may be for the initial amount specified by the merchant but the transaction is ultimatelv submitted in a different amount. You should be certain there are sufficient funds in the available balance in an account with us at all times to pay your checks or EFTs or they will be handled according to the insufficient funds and overdraft terms of the MSA. Please see Provision 6.j. of the MSA Part 2 for further information.

Insufficient Funds to Pay Checks, EFTs & Debit Transactions

If the available balance of funds in a checking account with us is not sufficient to pay a check, EFT or other debit transaction on the account, we may return it for insufficient funds and require a charge or fee to cover the cost of the return. Insufficient funds to pay checks and EFTs (and other debits) may result from 1) your checks we pay, 2) holds on funds of checks you deposit, 3) your online bill payments (EFT debits), 4)payments you authorize or your withdrawal requests, 5) your deposited checks returned unpaid, and 6) charges for services you request or incur. You understand ti is your responsibility to assure the available balance in an account with us is sufficient to pay all your checks and EFTs. You also understand we have no duty to notify you fi the available balance in an account is insufficient to pay your checks and EFTs. We may also pay a check or EFT drawn on an account with insufficient funds and require a charge on fee (though if we pay a check or EFT drawn on an account with insufficient funds, ti does not mean we will make such a payment in the future). If we return an item for insufficient funds, the payee (or the payee's institution) may re-present it. Each presentment against insufficient funds will result in a separate charge or fee. Finally, fi we are repeatedly returning checks, EFTs or other debit transactions for insufficient funds, we may consider that account abuse and terminate the account you have with us. Please see Provision 6.k. of the MSA Part 2 for further information.

The Overdraft Transfer Services We Offer

If you qualify for one of our overdraft transfer services, we may pay your checks or EFTs drawn against an insufficient available balance of a checking account by transferring funds from another account or loan you have with us to the checking account. We may also require a charge or fee to cover the cost of this overdraft transfer service. Transfers from account(s) to a checking account are addressed in Provision 6.1. of the MSA Part 2, whereas transfers from a loan to a checking account are governed by a separate loan agreement. You understand we may apply funds deposited to the accounts) you have with us to your outstanding overdrafts and charges or fees, regardless of the source of the deposit, including directly deposited government entitlements or benefits such as Social Security deposits. Please see Provision 6.1.1) of the MSA Part 2 for further information.

The Courtesy Pay Services We Offer

If the available balance in a checking account with us is insufficient to pay a check and you are in good standing, you may use the privilege of our Courtesy Pay service to have us pay the check(s) up to a set limit as explained in Provision 6.I.2) of the MSA Part 2. To be in good standing requires you to be at least eighteen (18) years of age, not caused a loss and to meet other requirements addressed in this same Provision of the Part 2. fI you qualify, we may pay your check overdrafts up to a limit as specified in Provision 6.1.2) for a charge or fee for each overdraft on the account. Additionally, you must also notify us and opt in for this overdraft service to apply to EFTs at ATMs and from non-recurring debit card transactions. fI you use this service, we will notify you of the amount paid and charge or fee for each overdraft transaction, and you will have thirty two (32) calendar days to reimburse us for paid checks, EFTs and charges or fees. Please be aware fi we are presented with checks or EFTs that exceed the amount allowed by our service they may be returned for insufficient funds and we will require a charge or fee. Also be aware that fi we are repeatedly presented with checks or EFTs that exceed the amount allowed by our service and are returned for insufficient funds, we may consider that account abuse and terminate the account you have with us. Please see Provision 6.k. of the MSA Part 2 for further information.