Bounce Protection

Bank of North Carolina is constantly evaluating new products and better ways to serve our customers. We have one! Effective upon approval we will add “BOUNCE PROTECTION” to your checking account.

POLICY
We will allow you to overdraw your account up to the negative available funds balance as shown for your account type listed at the end of this disclosure. With the Bounce Protection, we will generally pay your overdraft (non-sufficient items) as shown at the end of this disclosure. You will be charged the normal per item non-sufficient funds handling fee as set forth in our fee schedule, the same as is we returned your check unpaid. Of course, any and all bank fees and charges, including without limitation, the non-sufficient funds fee, will be included in this balance. Additionally, no fees will be assessed for one-time use point-of-sale terminal transactions or ATM transactions that cause an account to go overdrawn when the customer has not “opted in” for these transactions to be paid. The Bounce Protection is available for all checks you write, ACH items, or recurring point-of-sale transactions. We will also apply the same overdraft limit when authorizing and paying ATM and one time debit card transactions when the customer requests us to, but only after (1) the customer has received and understood the Reg E “opt-in” request, and (2) we have provided the customer with a written confirmation letter or a copy of the opt-in/out form. Finally, we will pay the highest check amount to the lowest check amount as they are presented to the bank.

It is the policy of the bank to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards. No application is required for the Bounce Protection; eligibility is based on you managing your checking account in a responsible manner. You will not be eligible for Bounce Protection if:

1. You are in default on any loan obligation to the Bank, or
2. You are subject to any legal or administrative orders or levy, or (The Bounce Protection Department may reinstate the Bounce Protection once the lien or levy has been satisfied.)
3. You are currently a party in a bankruptcy proceeding, or
4. You have a current outstanding balance in an Automatic Overdraft Repayment Plan, or
5. It appears that improper activity is taking place in your account, or
6. You do not bring your account to a positive balance at least once every 30 days, or
7. A negative ChexSystems indicator is not satisfied, or
8. You are minor, or
9. Your account is a trust or escrow account.
10. You have excessive overdrafts suggesting the use of Bounce Protection as a continuing line of credit.

After Your Bounce Protection has been activated we have the right to suspend your privilege with out notice if we become aware of any of the above conditions. We also reserve the right to suspend your Bounce Protection if we believe that you are not managing your account in a responsible manner which may harm you or us.

You must bring your account to a positive balance at least once every thirty days to maintain your Bounce Protection.

Your account agreement describes the duties, obligations, and rights of depositors, authorized signatories and the bank with regard to your deposit accounts. That account agreement is incorporated herein for all purposes as if it were set forth verbatim as to matters not directly addressed by this agreement. Your account agreement and this disclosure shall be construed so as to minimize conflicts between the two agreements. Waiver: The bank’s forbearance from, or delay, exercising any of the banks rights, remedies, privileges, or right to insist on your strict performance of any provisions on your account agreement, this Bounce Protection disclosure, or any other provision related to your account, shall not be construed to be a current or future waiver of the Bank’s rights, remedies or privileges.

ARBITRATION: THE BANK AND YOU HEREBY ACKNOWLEDGES THAT ANY CONTROVERSY ARISING OUT OF THIS BOUNCE PROTECTION OR BANK’S OR YOUR PERFORMANCE HEREUNDER, SHALL BE SETTLED BY ARBITRATION IN ACCORDANCE WITH THE RULES OF THE AMERICAN ARIBITRATION ASSOCIATION, EXCEPT AS PROHIBITED BY LAW.

You have the right to refuse the privilege by completing an Opt Out Form which may be obtained at your local branch.

BOUNCE PROTECTION LEVELS FOR THE APPLICABLE ACCOUNT TYPES ARE SET FORTH BELOW:

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