What You Need to Know about Overdrafts and Overdraft Fees

As a Parkvale accountholder, you currently enjoy the Bank's CheckGuard service, which authorizes payment of any check, electronic debit, ATM withdrawal, and debit card purchase up to a pre-established limit when there are insufficient funds in your checking account. Many of our customers find that this service helps them bridge pay periods or unanticipated household expenditures. Additionally, with CheckGuard, you avoid the embarrassment, inconvenience and additional merchant fees when a check is returned for insufficient or uncollected funds. In accordance with recent legislation passed by Congress, this service will no longer be available to authorize and pay ATM withdrawals and everyday debit card transactions without your prior written authorization.

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

1. We have standard overdraft practices that come with your account (CheckGuard).
2. We also offer overdraft protection plans, such as an overdraft protection line of credit (Check Line), which may be less expensive than our standard overdraft practices. To learn more, ask us about these plans.

This notice explains our standard overdraft practices (CheckGuard).

> What are the standard overdraft practices that come with my account?

At our discretion, we do authorize and pay overdrafts for the following types of transactions up to your pre-established CheckGuard limit:

• Checks and other transactions (such as ACH) made using your checking account number.
• Automatic bill payments

> After August 15, 2010, we will not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

• ATM transactions
• Everyday debit card transactions (for example, point-of-sale, telephone, and Internet sale)

We pay overdrafts at our discretion, taking into account the pre-established limit for your type of checking account. However, we do not guarantee that we will always authorize and pay any type of transaction. If we do not authorize and pay an overdraft, your transaction will be declined. If we do not authorize and pay an overdraft, your transaction will be declined.

> What fees will I be charged if Parkvale pays my overdraft? Under our standard overdraft practices:

• We will charge you a fee (currently $36) each time we pay an overdraft.
• For every day that your account remains overdrawn, we will charge you a daily fee (currently $3.00 per day).There is no limit on the total fees we can charge you for overdrawing your account.

> What if I want Parkvale to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions, complete the application below and click the Submit button.