Overdraft Privilege Overview

Overdraft Privilege helps protect you against the additional costs, embarrassment, and inconvenience of an accidental overdraft on your account by giving you a reserve for emergencies and unexpected situations. There is no charge for having this privilege on your account unless you use the service. If you do not overdraw your account, you will never be charged an overdraft fee.

Clients who have earned this privilege will be notified by mail approximately 35 to 40 days after their account has been opened. You can decide to keep it, cancel it, or extend coverage to include ATM and everyday debit/Banking Card transactions as well. If you think you would benefit from extended coverage, you may tell us your choice anytime before or after you earn this privilege on your account.

Please read on to learn more about your coverage options as well as the fees and limitations of this service. We hope that if the occasion arises, you will appreciate the convenience and support Overdraft Privilege can provide to you.

First Midwest Overdraft Privilege 

• 8 Reasons You'll Appreciate Overdraft Privilege
• Coverage Options
• Overdraft Privilege Policy

8 Reasons You'll Appreciate Overdraft Privilege

1. Added convenience.
2. A deposit you expected was delayed.
3. You have greater flexibility managing your money.
4. Unforeseen expenses drained your account balance.
5. Your chances of incurring a merchant's expensive returned-check charge are limited.
6. You made an honest mistake balancing your checkbook and now you're short of funds.
7. You may avoid the embarrassment of a declined debit card transaction (available only with extended coverage).
8. Other than our standard overdraft charges (set forth in our fee schedules), there is no additional fee for this service.

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Coverage Options

Choose the Overdraft Privilege coverage that's right for you: standard, extended, or no coverage at all.

Standard Coverage – You can elect to have Overdraft Privilege cover only checks, ACH items and recurring debit (typically used for automatic payment of subscriptions, dues, utility payments, etc.), and in-person transactions but NOT cover ATM or everyday debit/Banking Card transactions. Keep in mind that if the amount of an ATM or everyday debit/Banking Card transaction exceeds your available balance, it will be declined. For example, if you were trying to pay for groceries with your First Midwest Banking Card and the amount due totaled more than your available account balance, the purchase would be declined at the checkout counter.

Extended Coverage – You can elect to extend Overdraft Privilege coverage to include ATM and everyday debit/Banking Card transactions as well. Just give us your consent. You get the peace of mind of knowing that your transactions will be covered up to the amount of your limit in case of emergency or if you make an accounting error. And, you'll avoid the embarrassment of having your debit/Banking Card purchase declined at the checkout counter. You can extend your Overdraft Privilege coverage by:

• Calling our Automated Overdraft Privilege line at 877-907-1717
• Logging in above or at firstmidwest.com/overdraftprivilege
• Visiting one of our branch locations

Important – If you do not choose to extend your Overdraft Privilege Coverage, your ATM or debit/Banking Card will no longer work in emergency or unexpected situations if you do not have available funds in your account.

No Coverage – You can remove the Overdraft Privilege coverage entirely. Just tell us to remove the coverage at any time. This means that if your checks or ACH items exceed the available balance in your account, they will be returned to the payee and you will be charged a Returned Item Fee of $35 in addition to whatever fees the merchant may charge you for items returned as insufficient. If you try to use your ATM or debit/Banking Card and the amount of the transaction is more than your available balance, your transaction will be declined. For example, if you were trying to pay for groceries with your First Midwest Banking Card and the amount due totaled more than your available account balance, the purchase would be declined at the checkout counter.

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Consumer Discretionary Overdraft Privilege Policy

It is the policy of First Midwest Bank to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

The Retail Account Agreement and Disclosure 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 First Midwest Bank with regard to your checking, savings and/or money market accounts. The Retail Account Agreement and Disclosure (and all amendments thereto) and its terms shall control any possible conflict between any provision of this Consumer Discretionary Overdraft Privilege Policy and the Retail Account Agreement and Disclosure. A copy of the Retail Account Agreement and Disclosure is available to you on request from your First Midwest Banker.

Overdraft Privilege is not a line of credit. However, if you inadvertently overdraw your account, we will have the discretion to pay the overdraft, subject to the limit of your Overdraft Privilege and the amount of the overdraft fee. First Midwest Bank is not obligated to pay any item presented for payment if your account does not contain sufficient available funds. Any discretionary payment by First Midwest Bank of an overdraft check (or other item, such as an ACH transaction) does not obligate First Midwest Bank to pay any other overdraft check (or other item), or to provide prior notice of its decision to refuse to pay such check (or other item). For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits.

Pursuant to First Midwest Bank’s commitment to always provide you with the best level of service, now and in the future, if your consumer account (primarily used for personal and household purposes) has been open for at least thirty (30) calendar days, and thereafter you maintain your account in good standing, which includes at least:

A) Bringing your account to a positive balance within every thirty (30)
    calendar day period for a minimum period of one business day;

B) Not being in default on any loan or other obligation to First Midwest Bank and

C) Not being subject to any legal or administrative order or levy,

First Midwest Bank will have the discretion to pay overdrafts within the Overdraft Privilege limits, but payment by First Midwest Bank is a discretionary courtesy and not a right of the client or an obligation of First Midwest Bank. This privilege for consumer checking, savings, and money market accounts will generally be limited to a maximum of $500 overdraft (negative) balance. Of course, any and all fees and charges, including without limitation the overdraft and Returned Item Fees (as set forth in our fee schedules and Retail Account Agreement and Disclosure), will be included as part of this maximum amount. It may be possible that your account will become overdrawn in excess of the Overdraft Privilege amount as a result of the assessment of a fee.

The total of the discretionary Overdraft Privilege (negative) balance, which includes any and all fees and charges, including all overdraft and returned item fees is due and payable upon demand, and Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amounts, as described in the Retail Account Agreement and Disclosure. Our standard overdraft fee of $35 will be imposed for overdrafts created by checks, drafts, in-person withdrawals or transfers, preauthorized electronic transaction, ACH transaction, telephone transfers, automatic loan payments, Internet Banking transactions or other means. However, we will not charge you for more than 5 overdraft items (per account) in one day. And, we will not charge you at all if your account is overdrawn by less than $5. If your account remains overdrawn for seven (7) calendar days, we will charge an additional $6.50 per day beginning on the first business day following that period. Transactions may not be processed in the order in which they occurred, and the order in which transactions are received and processed may impact the total amount of fees incurred. The Bank pays items as disclosed in your Retail Account Agreement and Disclosure, as amended.¹ However, we reserve the right to change this order without notice to you.

While First Midwest Bank will have the discretion to pay overdrafts on accounts in good standing (as described above), any such payment is a discretionary courtesy, and not a right of the client or an obligation of First Midwest Bank and First Midwest Bank in its sole and absolute discretion, can cease paying overdrafts at any time without prior notice of reason or cause.

For our consumer clients, First Midwest Bank will not authorize overdrafts for ATM or everyday debit/Banking Card transactions unless First Midwest Bank has provided you with the notice required by Section 205.17(b) of Regulation E and you have elected to extend your Overdraft Privilege coverage to include payment of these overdrafts. First Midwest Bank will place a hold on your account for any ATM or everyday debit/Banking Card transaction authorized until the transaction settles. This hold will reduce your Available Balance and reduce or eliminate available funds to pay for other presented items. ATM and everyday debit/Banking Card transactions usually settle within two business days after the transaction is authorized. The amount of the hold will be for the amount authorized, or as otherwise permitted or required under applicable payment network rules. Holds on authorized ATM and everyday debit/Banking Card transactions will be removed prior to settlement where required by applicable payment network rules.

You may contact our Overdraft Services Department at 888.312.6100 for questions or concerns related to Overdraft Privilege; to remove Overdraft Privilege from your account(s); or to discuss alternative overdraft protection services that may provide a less expensive means to handle overdrafts.

^{1 Please refer to the “ADDENDUM TO RETAIL ACCOUNT AGREEMENT & DISCLOSURE DATED APRIL 1, 2009: IMPORTANT INFORMATION ABOUT OVERDRAFTS/RETURNED ITEMS, EFFECTIVE FEBRUARY 1, 2012.”}

Know your options. Understand the trade-offs. Make the best choice for you.

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