NEW Federal Reserve Bank Rules

(Response may be required) PLEASE READ!

Recent regulatory changes adopted by the Board of Governors of the Federal Reserve require us to change our standard overdraft practices that apply to all checking accounts. These changes will require Exchange Bank as well as most financial institutions in the country to discontinue overdraft protection for ATM and everyday debit card transactions unless you affirmatively agree, or "Opt-In" to overdraft protection for these transactions.

Even for me, new regulations can be very difficult to interpret and are often confusing. In my 20 years of banking, few pieces of regulation have ever required a direct response from our customers. As Congress and Federal regulators continue to cope with the "Wall Street" bank financial meltdown, "Main Street" banks such as ours will be forever changed. As such, I've prepared the following informational bullet points in an attempt to clearly explain the options available to you under the new Federal Reserve Bank rule which will take effect on August 15, 2010.


  • What is an overdraft? An overdraft occurs when a person does not have enough money in their account to cover a payment that has been authorized, but the bank pays it as an accommodation, trusting that the person will repay the amount of the overdraft.
  • Why might a bank honor an overdraft? Banks pay overdrafts because many people are willing to pay a fee to have important payments (such as mortgage, rent, medical, and merchant bills) paid even if there is not enough money in the account. Honoring the overdraft will avoid embarrassment, and more importantly, it may prevent future checks or electronic payments to these payees from being rejected.
  • What does the new Federal Reserve Rule do? The new rule mostly affects ATM transactions and everyday debit card transactions made for purchases at a store or on the internet while using an ATM or Debit card. The new rule requires that customers must expressly agree (Opt-In) before a bank may charge a fee for honoring such overdrafts.

Things to Consider:


  • We know many of our customers appreciate the convenience, flexibility and peace of mind provided by having Bounce Protection in place to cover their banking transactions. The service provides a fast and discrete way to bridge a temporary gap. By opting in, you can assure that this protection remains available when you need it.
  • Opting –In does not cost anything. There is no charge or price change that happens when you Opt-In. Basically, you are deciding to continue to enjoy the overdraft protection you had at ATMs, at merchants, and on the internet. As has always been the case, ONLY if an overdraft occurs will there be a charge, and that fee has not changed.
  • Most people occasionally overdraw their account accidentally. If you do not Opt-In, a debit card transaction that overdraws your account at ATMs or while making everyday purchases will (beginning August 15, 2010) most likely be denied.
  • Opting – In is not a permanent decision. If you wish to change your mind, you may do so at any time by contacting us.
523 Delaware, P.O. Box 797
Perry, OK 73077
4301 W. 6TH
Stillwater, OK 74074


How to Opt-In Now:


  • Select the Opt-In link/button located on this webpage, provide the required information and submit
  • Call 580/336-5531 (Perry) or 405/742-0202 (Stillwater)
  • Email your Opt-In Request to to include Name and last 3 digits of the account number

In conclusion and simply put - As a result of new Federal Regulation, unless you tell us you want to continue to apply Bounce Protection to your ATM and everyday debit card transactions, beginning August 15, 2010 we will decline any transaction that overdraws your account. However, your overdraft protection for checks, automatic bill payments and other transactions will remain unchanged.

We want you to make an informed decision. If you still have questions, please feel free to contact one of our customer service representatives.

On behalf of our Directors, Officers and Employees – the Exchange Bank is honored to have you as a depositor and we look forward to a long and meaningful relationship.



Charles R. Hall

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