Kinecta Federal Credit Union
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Overdraft Protection

Important changes to your billing statement - July 2010

With Overdraft Line Of Credit, You’re Covered

Providing our members peace of mind is a priority at Kinecta. If you have a Kinecta checking account, enjoy the added confidence and convenience of Overdraft Line of Credit.

This convenient product keeps you covered when those unexpected monthly expenses add up. If you run out of money in your checking account, we’ll automatically transfer the exact amount you need from your line of credit to cover any overdraft.* No need to worry about overdraft fees or bounced checks.

Apply Online  



You can also visit your local Kinecta member service center or call 800.854.9846.

Click to download our tabular Disclosure

Overdraft Line of Credit keeps you covered with:

Peace of Mind

  • No more overdrafting your checking account.*
  • Avoid paying the $29 NSF fee.

Convenience

  • Borrow against your line of credit when you need some extra money.
  • Transfer to your checking account anytime by using Kinecta Direct Online Banking or contacting one of our Member Service Centers.
  • Apply ahead of time for automatic transfers to your checking account in case of overdraft.

Low Cost

  • No annual fee.
  • Only $2 for automatic transfers to your checking account to cover overdrafts, plus the interest paid on the loan.
  • Free transfers through Kinecta Direct Online Banking or a Member Service Center.
  • Affordable monthly payments —only 4% of the balance.

Flexibility

  • Credit limits available between $500 and $5,000.**
  • Choose to cover overdrafts with your line of credit first and share savings account second, or vice versa.

*  When enrolled for preauthorized transfers to your checking account and subject to your available credit.
**Subject to credit approval.

Late Charges:
For Lines of Credit: If your minimum periodic payment is more than 15 days late, a late charge of $20.00 will be assessed.

Minimum Periodic Payment: For Lines of Credit, your minimum periodic payment is 4% of your outstanding loan balance as of the date the billing cycle closes; however, your minimum periodic payment will not be less than $30.00 or the balance due, whichever is less.

Line of Credit:  NOTICE – THIS DOCUMENT CONTAINS PROVISIONS FOR A VARIABLE ANNUAL PERCENTAGE (INTEREST) RATE.
How We Determine Changes in Your ANNUAL PERCENTAGE RATE: The ANNUAL PERCENTAGE RATE may increase or decrease on a monthly basis during the term of the Credit Agreement. Any such change will be based on an increase or decrease in the “Index” in effect on the fifteenth (15th) day of each month. The “Index” is the “Prime Rate” as published in the “Money Rates” section of the Wall Street Journal. In the event Prime Rate ceases to be published, changes in the ANNUAL PERCENTAGE RATE will be related to a comparable Index as permitted under applicable law and/or regulation by mailing a notice of the change to you at least forty-five (45) days prior to the effective date of the change at your last known address. This notice shall state: (a) the new ANNUAL PERCENTAGE RATE; (b) the new Index; (c) the change, if any, in the Minimum Monthly Payment; (d) the effective date of the change; (e) your right to repay the Account without prepayment charge.

Your ANNUAL PERCENTAGE RATE is determined by adding a “margin” to the Index in effect as of each Adjustment Date. We may waive an increase in the ANNUAL PERCENTAGE RATE at a future date when entitled to do so.

Your ANNUAL PERCENTAGE RATE is subject to change on the first (1st) day of each month. These dates shall be known as “Adjustment Dates.” For example, the Index in effect on January 15 shall be used to calculate the ANNUAL PERCENTAGE RATE change effective February 1 of the same year. The maximum ANNUAL PERCENTAGE RATE may not exceed the maximum ANNUAL PERCENTAGE RATE permitted federally chartered credit unions at the time of each Adjustment Date. Except as set forth above, there are no monthly or other limitations on changes in the ANNUAL PERCENTAGE RATE during the term of the Credit Agreement. Decreases in the ANNUAL PERCENTAGE RATE in accordance with the terms of the Credit Agreement are mandatory. Increases in the ANNUAL PERCENTAGE RATE in accordance with the terms of the Credit Agreement are at our discretion. Any increase or decrease in the ANNUAL PERCENTAGE RATE will result in changes in the number of payments required to repay the unpaid balance.