For your convenience, Caldwell Bank provides Overdraft Protection. If you have another checking or savings account with us, either you can transfer funds into the overdrafted account, or Caldwell Bank will do it for you in $50.00 increments until covered. All we need from you:

• Signature is required to implement this service
• See one of our friendly staff for details

It is the policy of CALDWELL BANK & TRUST COMPANY to comply with all applicable laws and regulations to conduct business in accordance with applicable safety and soundness standards.

The Account Agreement, Funds Availability & Electronic Funds Transfer (EFT) Disclosure (“Account Agreement”) provided to you at the time you opened your account with us controls the duties, obligations and rights of the Depositor, the Authorized Signatories and CALDWELL BANK & TRUST COMPANY with regard to your checking account. The Account Agreement (and all amendments thereto) and its terms shall control any possible conflict between any provision of this Discretionary Overdraft Privilege Policy and Account Agreement. A copy of the account agreement is available to you upon request from a CALDWELL BANK & TRUST COMPANY representative at any of our branches.

CALDWELL BANK & TRUST COMPANY is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Any discretionary payment by CALDWELL BANK & TRUST COMPANY (or other negotiation or processing) of any non-sufficient fund check or checks (or other item) does not obligate CALDWELL BANK & TRUST COMPANY to pay any additional non-sufficient fund check or item or to provide prior notice of any decision by CALDWELL BANK & TRUST COMPANY to refuse to pay any additional non-sufficient fund check or item.

Pursuant to CALDWELL BANK & TRUST COMPANY’S commitment to always provide you with the best level of customer service, now and in the future, coverage under this program will be automatic beginning at account opening in the amount of $100.00. If your consumer account has been open for at least forty-five (45) days and thereafter you maintain your account in good standing, you will receive the full overdraft coverage of $500.00. An account in good standing includes at
least:

• Making regular deposits consistent with your best practices;
• Depositing an amount at least equal to the amount of discretionary privilege overdraft extended to you in your account within a thirty (30) day period and bringing your account balance to a positive balance at least once every thirty (30) days;
• You are not in default on any loan or other obligation to CALDWELL BANK & TRUST COMPANY;
• You are not subject to any legal or administrative order or levy

We may determine, at our discretion, the order that we process and post credits, debits and holds to your account. Items presented for payment may not be processed in the order as they are received and that order may affect the total fees assessed to your account. Typically all credits are posted to your account first with debits following by category. Generally the first items that we pay are ATM withdrawals and debit card transactions. Next, we pay any checks cashed at our bank or that you have written to us and checks taken for deposit for which cash is not given, in whole or in part, at our bank. We then pay items that were submitted electronically, such as ACH items, preauthorized automatic transfers, telephone -initiated transfers and any other electronic transfers. Finally, we pay the remaining checks by dollar amount, from low to high.

CALDWELL BANK & TRUST COMPANY WILL CONSIDER APPROVING YOUR REASONABLE OVERDRAFTS AS A DISCRETIONARY PRIVILEDGE AND NOT A RIGHT OF YOURS OR ANY OBLIGATION ON CALDWELL BANK & TRUST COMPANY. This discretionary service is offered as a privilege to certain customers and generally limited to a maximum of $500.00. Any and all bank fees and charges, including without limitation all fees and interest charges associated with returned items (NSF)/overdraft, which is currently $30.00 for handling each item paid by discretionary overdraft privilege and drawing on uncollected funds (as set forth in our fee schedules and account agreement), will be included in this limit. Any item that is initially returned to the payee because the available balance in your account was not sufficient to cover the item can be represented by the payee for payment multiple times, which is beyond our control. We will charge an overdraft or return item fee regardless of the number of times an item is presented to us for payment against insufficient funds, and regardless of whether we pay or return the item. If your account should reach an overdrawn status, you will be notified in writing of the overdraft account. If the account is still overdrawn in 30 days, the overdraft courtesy amount will be lowered to the minimum amount or be suspended from the account. Once the account has a positive balance, the Bank may elect to reinstate the full courtesy amount.

CALDWELL BANK & TRUST COMPANY may refuse to pay any item that would result in any overdraft (negative) balance in your account, even though your account is in good standing and even though CALDWELL BANK & TRUST COMPANY may have previously paid overdrafts for you. CALDWELL BANK & TRUST COMPANY is not obligated to notify you before we pay or return any item which would result in an overdraft (negative) balance.

The total of the discretionary privilege overdraft (negative) balance, including any and all bank fees and charges and all fees and interest charges associated with non-sufficient funds/overdraft items and drawings on uncollected funds (as set forth in our fee schedules and account agreement), is due and payable upon demand. Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Account Agreement.