Overdraft Privilege Disclosure

• The payment of overdrafts is NOT guaranteed.
• You are NOT required to have this service on your account – you may opt-out at any time.
• You will be charged an overdraft fee for each insufficient item paid into overdraft.
• If you overdraw your account, you MUST return the account to a positive balance within 30 days, or your Overdraft Privilege will be suspended.
• There are other overdraft protection options available to you which may be less costly.

PRODUCT / SERVICE	DESCRIPTION	COST
Transfer from another account	If you have other accounts with us, you can authorize us in advance to transfer the funds needed to cover overdrafts	$5 per transfer
Overdraft Line of Credit	This product requires you to complete an application and approval and APR is based on your credit worthiness.	APR
Overdraft Privilege	See description below	$35 per item

ODP is a service we add to your checking account to cover inadvertent overdrafts, subject to the eligibility criteria as explained below. With ODP we will generally pay your overdraft items up to $500 for personal accounts and $1,500 for business accounts, however, 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. You will be charged our normal overdraft or return item fee currently $35 for each item that is presented. When more than one overdraft item is presented and paid, multiple overdraft fees may be charged. Both the amount of the overdraft items and all other fees, including but not limited to overdraft fees, are included in this limit. All deposits to overdrawn accounts are applied to the negative balance. Checking accounts that remain overdrawn for 45 consecutive calendar days may be closed and charged off.

Our policy is to make funds from cash, checks, and electronic direct deposits available to you on the same day that we receive your deposit. At that time, you can withdraw the funds in cash, and we will use the funds to pay checks that you have written.

No application is required; eligibility is at the discretion of the Bank. You may not be granted ODP if:

• Your account has been open for less than 30 days
• Your account type is not eligible
• You are not making regular deposits
• You are more than 30 days past due on any Bank loan or delinquent on any other obligation to the Bank
• You are subject to any legal or administrative orders, levy, or are currently a party in a bankruptcy proceeding
• You have an outstanding Overdraft Repayment Plan balance
• Your account is being reviewed for fraudulent activity
• The primary account owner is less than 18 years old
• A ChexSystems or other negative indicator has been reported to us
• Your account is classified as inactive
• You have an unresolved prior loss with the Bank
• We do not have a valid address for you

You may be suspended or removed from ODP if:

• You do not bring your account to a positive balance within 30 days of becoming overdrawn
• You fail to meet the eligibility criteria
• If you meet all of the criteria above, we may still remove ODP if we believe you are not managing your account in a responsible manner which may harm you or the Bank

• Checks
• Internet banking
• ATM Transactions*
• ACH transactions
• Preauthorized automatic transfers
• Debit Card Transactions*
• In-person withdrawals
• The primary account owner is less than 18 years old
• A ChexSystems or other negative indicator has been reported to us
• Your account is classified as inactive
• You have an unresolved prior loss with the Bank
• We do not have a valid address for you

*Overdraft Privilege will only be available for ATM and everyday debit card transactions on consumer accounts if you authorize the Bank to pay those transaction types (see ATM/Debit Card Consent Form). Business accounts will automatically be opted in for all transaction types.

If you authorized ODP for ATM transactions, please verify your available balance before initiating an ATM withdrawal.

If you do not want to have Overdraft Privilege, simply contact us and we will provide you an opt-out form to remove this benefit from your account. There is no additional cost for ODP. By opting out you are instructing us to return unpaid items presented against insufficient funds. If you opt-out, you may still be charged our $35 returned item fee. Customers who receive Social Security, federal direct deposit or any other entitlement benefit must opt-out if they do not want the Bank to apply those funds to pay an overdraft. If this is a joint account, I agree that the signature of only one accountholder is necessary for the Bank to revoke Overdraft Privilege.

We pay items based on our actual (ledger) balance. The actual (ledger) balance method calculates your account balance only based on transactions that have settled, and it does not reflect pending transactions or checks that have not posted to your account. Items presented for payment may not be processed in the same order as they were received and that order may affect the total fees assessed to your account. Generally the first items that we pay are ATM withdrawals, debit card transactions, and any checks cashed at Woodlands Bank or that you have written to us. We then pay any 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 items in serial number order.

The Bank believes that financial literacy and education helps consumers make informed decisions. Awareness of personal financial responsibility allows consumers to realize the benefits of responsible money management, understand the credit process and the availability of help if problems occur.

www.mymoney.gov is the federal government’s website for federal financial literacy and education programs, grants and other information.

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 disclosure. Your account agreement and this disclosure shall be construed so as to minimize conflicts between them.

The Bank’s forbearance from, or delay in, exercising any of the Bank’s rights, remedies, privileges, or right to insist on your strict performance of any provisions of your account agreement, this ODP 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.

You and the Bank agree that the exclusive remedy and forum for all disputes arising out of the Overdraft Privilege or your Bank’s performance there under, except for matters you or Bank take to small claims court, is arbitration by an independent arbitrator pursuant to the applicable rules of the American Arbitration Association, except as prohibited by law.