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Overdraft Regulation Changes


Important Information Regarding Overdrafts for ATM and Everyday Debit Card Transactions

A change to a federal regulation now requires customers to “opt-in” or “opt-out” of overdraft services involving ATM and everyday debit card transactions. 
Currently, customers may receive a benefit that is designed to help in the rare occasion when there are not sufficient funds in an account to approve a transaction. In those cases, we may approve the transaction that will create an “overdraft” or a negative balance in the account.  The overdraft is then typically repaid with the next deposit.  If items are paid that overdraw your account, the bank may charge a fee. The regulatory change requires that in order to continue to receive this benefit, customers will be required to “opt-in” or agree to the terms and conditions of the overdraft service program* for ATM and everyday debit card transactions.  We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction. 

Your debit or ATM card will work as it currently does. If we authorize ATM or everyday debit card transactions that cause your account balance to be negative you will incur our normal $30 overdraft fee.
Effective August 15, 2010, we will no longer be able to provide coverage for ATM and everyday debit card transactions that would cause your account balance to be negative. If there are not sufficient funds in your account, the ATM and everyday debit card transaction will be declined.
We must receive your response by August 15, 2010** to ensure your continued benefit of overdraft services for ATM and everyday debit card transactions.

We offer several ways to provide your response

* This new regulation and form is applicable for consumer accounts only; it does not apply to business accounts. Do not email this form as it may contain sensitive information.



Pelham Banking Company
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By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category. For more information about FDIC insurance coverage of noninterest-bearing transaction accounts, visit

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