Navigation:  Deposit Screens > Account Information Screen Group > Overdraft & Secured Loans Screen > Overdrafting Conditions and Options

This help page describes the transaction, institution, and CIM GOLD features that allow an institution to establish uncollected funds criteria to use when overdrafting to cover non-sufficient checks and withdrawals on the customer deposit account.

 

•The Overdraft field on the Deposits > Account Information > Account Information screen must be marked for overdraft features to be enabled on the customer account.

 

•The Sub-Limits? field on the Loans > Line-of-Credit Loans screen must be marked if the customer account will be set up as an overdraft account. Overdrafting will only use funds up to the account's sub-limit amount. Transactions requiring more funds than that amount will be rejected by the system.

 

•If Transaction Condition #28 "Drawing on Uncollected Funds" is set to require an override, all checks presented that are greater than the Payable Balance will use overdraft amounts to cover them. This only applies if the overdraft limit is enough to cover the funds. If this transaction condition is set to be ignored, any checks presented against a non-sufficient payable balance will use the uncollected amounts instead of overdrafting the transaction. The payable balance is calculated as follows, using values that can be viewed in fields on the Deposits > Account Information > Account Information and Additional Fields screens:

 

Current Balance - Minimum Balance - Over-the-Counter Holds - Uncollected Funds = Payable Balance

 

•Transaction condition #55 "OD Would Not Cover UCF" is also available. This condition is used when a customer account's Payable Balance is already negative because of an override on a previous non-sufficient transaction that allowed uncollected funds to be drawn into the customer account. This condition allows your institution to overdraft enough money to maintain the negative payable balance. This transaction condition should only be used when customers are not allowed to draw on uncollected funds (Transaction Condition #28) and overdrafting is used to cover uncollected funds (Institution Option OPT6 - UCOD).

 

•Institution Option OPT6 - UCOD must be enabled if an institution wants to overdraft money even though there are uncollected funds that could be used. As a result, when checks are presented against a customer account whose Payable Balance is not enough to cover the check amount, overdrafting will occur to maintain the payable balance. This should be used only when Transaction Condition #28 requires an override.

 

•Institution Option MLOD allows your institution to tie multiple deposit accounts to one loan account. The overdraft can be advanced from either the same loan for which the payment is being posted, or from another account.

 

•Institution Option ODCL allows your institution to specify a credit card number length so that credit card accounts can be used for overdrafting purposes. If this option is not in use, credit card overdrafting fields will not appear on the Overdraft & Secured Loans screen.

 

The Overdraft Processing Listing (FPSDR024) is a daily report that shows all accounts that used overdraft funds to process withdrawals.

 

Loan payments can also be drafted from deposit accounts that have overdraft protection. The system will post the payment and pull the funds from the overdraft account if necessary. The Available Balance on the Deposits > Account Information > Account Information screen is used in the calculation to determine if sufficient funds are available. The overdraft can be advanced from either the same loan for which the payment is being posted, or from another account.