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Customer Overdraft Policy

Bounce ProtectionSM

Having a check returned due to insufficient funds can be a costly and humiliating experience. That’s why we provide “Bounce ProtectionSM,” a special overdraft privilege for Farmers & Merchants Bank (F&M) personal checking account customers. Bounce ProtectionSM gives you an added level of protection against unanticipated cash flow emergencies and account reconciliation errors. We do not encourage overdrafts at F&M. As always, we encourage you to manage your finances responsibly. The purpose of this privilege is to save you from the embarrassment, additional merchant fees, or other problems that might result if a check is returned unpaid.
 
Bounce ProtectionSM is an overdraft privilege limit that is automatically assigned to your personal checking account. Personal checking accounts have a Bounce ProtectionSM limit of $300, personal interest on checking accounts have a Bounce ProtectionSM limit of $500, and personal Money Market accounts have a Bounce ProtectionSM limit of $1,000. If you have multiple accounts for your household, you may have a limit on all eligible accounts. You may be able to use the overdraft privilege limit assigned to your account 90 days after the account is opened.
 
There is no additional cost associated with this privilege unless you use it. However, you should keep in mind that you will be charged a $20 overdraft fee for each item paid under the limit, whether the overdraft is by check or by other means. An overdraft fee may be imposed for covering overdrafts created by check, in-person withdrawal, ATM withdrawal, other electronic means, the return of unpaid items negotiated by you, or the deposit of items which, according to the bank’s Funds Availability Policy, are treated as uncollected.

We are not obligated to pay any item presented for payment if your account does not contain sufficient collected funds. However, if you maintain your checking account in good standing (defined as making regular deposits and bringing your account to a positive balance at least once every 30 days) and there are no legal orders outstanding, we may approve your reasonable overdrafts up to the Bounce ProtectionSM limit on your account as a non-contractual courtesy. So as not to exceed your limit, you should note that the amount of the overdraft item plus the bank’s overdraft fee of $20 per item will be deducted from the overdraft limit. We may refuse to pay an overdraft for you at any time, even though we may have previously paid overdrafts for you. Whether your overdrafts will be paid is discretionary and we reserve the right not to pay. For example, we typically do not pay overdrafts if your account is not in good standing, or you are not making regular deposits, or you have too many overdrafts. Normally we will not approve an overdraft for you in excess of the predetermined amount assigned to your account type.
 
You will be notified by mail of any item paid into overdraft or returned unpaid that you may have; however, we have no obligation to notify you before we pay or return any item. You should make every attempt to bring your account to a positive balance within 30 days. If, after a period of time, your account has not been brought to a positive balance, we may suspend your overdraft privilege limit and take other steps to recover funds. The amount of any overdraft plus our fee(s) shall be due and payable upon demand. 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 overdraft plus our fee(s).
 
In the event you would like to have this service removed from your account, you may do so by written request and/or the completion of a service removal form at your local branch. One of these two methods will be required to remove the service. You may opt out of the privilege at any time, but you are responsible for any overdrawn balances at the time of opting out. However, once this service is removed, you should keep in mind that if an item is presented for payment and there are not sufficient collected funds in your account, the item may be returned unpaid to the payee and a $20 insufficient funds fee may be charged for each item.

Your Bounce ProtectionSM limit will not be reflected in your balances provided by a Teller, at the ATM, through Online Banking or Telebanker. However, Bounce ProtectionSM may be available to you when you need it.
 
By keeping accurate records and knowing your balance, you can avoid mistakenly accessing your Bounce ProtectionSM limit and incurring fees. The best way to do this is to use your checkbook register to keep track of your deposits, written checks, withdrawals, and ATM or Debit Card transactions. Always reconcile your register with your monthly bank statement.
 
If you have a Memorial Family Line Account (MFL) or are using Ready Cash Deposit (RCD) from your Farmers & Merchants credit card, Bounce ProtectionSM will not be applied to your account.

All F&M Bank Certificates of Deposit are subject to penalties for early withdrawal.
Money Market accounts are limited to six withdrawals or transfers to another account of yours or to a third party by means of a preauthorized or automatic transfer or telephone order or instruction, computer transfer, or by check, draft, debit card or similar order to a third party. Exceeding these limitations may result in transfer of your account to one that pays no interest. A separate application and agreement are required for an ATM card, Online Banking, and Bill Pay privileges. Other transaction limitations or account fees may apply. Refer to the account agreements for details.
Applications limited to California residents only. Credit card applicant(s) require a personal deposit account relationship with F&M. All credit card programs require credit approval. Full details about these programs are provided when you apply and additional information is provided when you become a cardholder. Coverage is underwritten and administered by companies affiliated with Visa USA Inc. Certain coverage conditions, restrictions, limitations and exclusions apply.
Home equity lines of credit are available for both primary residence and second home locations. The plan has a variable rate feature. The index is the prime rate as published in the Wall Street Journal with a minimum floor rate of 4.750%. Maximum combined loan to value is 55.00% with line amounts available up to $500,000. All loans require credit approval. Terms and conditions may vary. Consult your tax advisor regarding deductibility of interest.
All loans require credit approval. Terms and conditions may vary.
Please be advised that without the loan number and signature, there may be a delay in processing your request.
All loans require a separate application and credit approval.
Business interest on checking accounts is available to sole proprietors and non-profit entities only. Other transaction or account fees may apply. Refer to the account agreements for details.
Savings accounts are limited to six pre-arranged withdrawals per statement cycle. Other transaction limitations or account fees may apply. Refer to the account agreements for details.
Credit card applicant(s) require a business deposit account relationship with F&M.  All credit card programs require credit approval.  Full program details are provided when you apply and additional information is provided when you become a cardholder. Coverage is underwritten and administered by companies affiliated with Visa USA Inc. Certain coverage conditions, restrictions, limitations and exclusions apply.
All loans are subject to credit approval.
Online Banking requires a Business Checking account. A separate application and agreement are required for Online Banking, Cash Management Services, or Bill Pay privileges. Other transaction or account fees may apply. Refer to the account agreements for details.
Savings accounts are limited to six pre-arranged withdrawals per statement cycle. A separate application and agreement are required for Online Banking and Bill Pay privileges. Transactions initiated between the hours of 3:00 PM and 12:00 AM PST on weekends or holidays will be processed the next business day. Other transaction limitations or account fees may apply. Refer to the account agreements for details.
Online Banking requires a Business or Personal account with F&M Bank. A separate application and agreement are required for Online Banking, Cash Management, and Bill Pay services. Transfers between accounts will be processed immediately if requested by 6pm. All other transactions initiated between the hours of 3:00 PM and 12:00 AM PST on weekends or holidays will be processed the next business day. Other transaction limitations or account fees may apply. Refer to the account agreements for details.
Some exclusions may apply.
The following Privacy Notice applies to Farmers & Merchants Bank customers only.
Since email is not a secure method of communication, please do not send any sensitive information (e.g. Social Security or account numbers) via email. If you need to include sensitive information in your communication to us, please contact us by phone.
Subject to credit approval, certain restrictions and limitations may apply.
No Closing Costs to the consumer for lines of $250,000.00 or less on refinance transactions. Loan amounts over $250,000.00 and all purchase transactions, third party or related origination costs to be paid by Borrower.