NORTHSTAR BANK OF TEXAS Overdraft Privilege Service (ODP) Agreement

It is NORTHSTAR BANK'S (we, us, or our) policy to comply with applicable laws, rules and regulations, and to conduct business in accordance with strict safety and soundness standards. A non-sufficient funds (overdraft/negative balance) may result from: A) The payment of checks, electronic funds transfers, or other withdrawal requests you initiate; B) Payments authorized by you; C) The return, unpaid, of items deposited by you; D) Charging your account for our applicable service charges and fees; E) The deposit of items to your account which, according to our Funds Availability Policy, are treated as not yet "available" or "finally paid.' We are not obligated to pay any item initiated for payment against your account if your account does not contain sufficient collected funds. Rather than automatically returning unpaid, all non-sufficient funds items that you may have, we will consider, without obligation on our part, approving your reasonable overdrafts up to your assigned ODP Limit, including our fees. Consideration will be given only when your "eligible account type" has been open for at least thirty (30) days and your account is in good standing, which includes these basic requirements:

(A) You continue to make deposits consistent with your past practices and maintain an average balance in the account of at least $400 for the 30 day period following account opening.

(B) You do not incur any non-sufficient fund (NSF) activity for the 30 day period following account opening.

(C) You are not In default on any loan obligation with us.

(D) Your account is not the subject of any legal or administrative order or levy, such as bankruptcy or tax lien.

This discretionary service* will generally be limited to a $800 overdraft (negative) balance for eligible personal checking account types or a $1,500 overdraft (negative) balance for eligible business checking account types. Our normal fees and charges include our then published overdraft fee or returned item fee; currently $29.50 per overdraft item or returned item, as set forth in our fee schedule, will be charged, up to 5 overdraft items or $147.50 per day, for payment from your checking account that does not have sufficient collected funds. We reserve the right to require you to pay your outstanding overdraft (negative) balance, including our fees, immediately or on demand. We will charge our normal overdraft fee or returned item fee whether we approve an overdraft item for payment or return it unpaid.


Our overdraft fees or returned item fees will be included in and count against your assigned ODP limit of $800 or $1,500. Whether or not your overdrafts will be paid is at our sole discretion, and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing as described above or if you have too many overdrafts as determined solely by the bank on a case by case basis. We may refuse to pay an overdraft for you at any time, even though your account is in good standing and even though we may have previously paid overdrafts for you. You will be notified by mail of any overdraft items paid or returned items that you may have; however, we have no obligation to notify you before we pay or return any item. The amount of any overdrafts including our fees that you owe us shall be due and payable immediately. If there is an overdraft paid by us on an account with more than one (1) owner on the signature card, each owner, and agent if applicable, drawing/presenting the item creating the overdraft, shall be jointly and severally liable for such overdrafts including our fees.


Optional Overdraft Privilege Service: We offer an additional overdraft privilege service that you may request. This is a transfer from another account of yours with us. Using this option may save you money on the total fees you pay us for overdraft privilege services.


Ineligible Accounts and Limitations: Available only for eligible checking accounts that are maintained in good standing as defined above. Savings Type Accounts, Money Market Accounts, Velocity Saver, Public Fund/Charitable Organization Accounts, certain Trust Accounts and Minor Accounts (not of legal age) are not eligible for this service. We may, at our sole discretion, limit the number of your accounts eligible for ODP to one account per household and/or one account per taxpayer identification number.


Eligible Account Types: The account types that are eligible for ODP are Free Star Checking, Regular Checking, Star 55 Checking, GenGold Checking, Velocity Checking, Free Small Business Checking, Rising Star Checking and Commercial Account Checking.


Transactions That May Cause or Create Overdrafts Using Your ODP Limit: Non-sufficient Funds (NSF) transactions initiated for payment against your checking account may be paid by us using your assigned ODP Limit, including our fees. Our overdraft or returned item fee may be imposed for paying, or not paying, overdrafts you create by checks, in person (teller) withdrawal, ATM withdrawal, or other electronic means. However, after July 1, 2010, we will not include ATM and daily point of purchase debit card transactions within our overdraft privilege service without first receiving your affirmative consent to do so.

As an example, if 5 items are presented for payment against your account on a given day and you do not have sufficient funds in your account to pay all the items presented, we will attempt to pay each item beginning with the smallest amount first with checks transacted in the Bank as priority, then ATM/Debit Card Transactions, then Automatic Clearing House (ACH) items, then checks presented by other Banks. Thereafter, each item that remains unpaid when the ledger balance of the account has been depleted may be paid using any available funds under your Overdraft Privilege Program. You will receive the then applicable non-sufficient fund charge for each item paid under the Program. Thereafter, each item, whether paid at the sole discretion of the Bank or returned will be assessed the then applicable non-sufficient funds fee. Therefore, you may incur multiple non-sufficient charges on a given day.


You May Always Opt-Out: You may choose at any time not to participate in ODP by notifying one of our Service Representatives who will explain what this (Opt Out) means and the potential consequences for you.


If You Need Help: Of course, overdrafts should not be used to pay ordinary or routine expenses and you should not rely on overdrafts as a means to cover these expenses. If at any time you feel you need help with your financial obligations, please contact one of our Service Representatives at 940-383-6200.


*ALWAYS A DISCRETIONARY SERVICE: Our ODP Service does not constitute an actual or implied agreement between you and us. Nor does it constitute an actual or implied obligation of or by us. Our ODP Service represents a purely discretionary courtesy or privilege that we may provide to you from time to time and which may be withdrawn or withheld by us at any time without prior notice or reason or cause.



TIPS TO AVOID OVERDRAFT FEES