Discretionary Overdraft Privilege Policy
(PRIVILEGE PAY)

It is the policy of Shell New Orleans Federal Credit Union to comply with all applicable laws and regulations and to conduct business in accordance with applicable safety and soundness standards.

The Deposit Account Agreement and Disclosure provided to you at the time you opened your account with us controls the duties, obligations and rights of the Depositor, the Authorized Signatories and Shell New Orleans Federal Credit Union with regard to your checking account. The Deposit Account Agreement (and all amendments thereto) and its terms shall control any possible conflict, if any, between any provision of this Discretionary Overdraft Privilege Policy and the Deposit Account Agreement and Disclosure. A copy of the Deposit Account Agreement and Disclosure is available to you on request from your Shell New Orleans Federal Credit Union officer.

Overdraft privilege is not a line of credit. However, unless the member objects, if the member overdraws a checking account, we will normally pay the overdraft, subject to the limit of the member's overdraft privilege and the amount of the overdraft fee. Shell New Orleans Federal Credit Union is not obligated to pay any item presented for payment if your account does not contain sufficient available funds, and any discretionary payment (or other negotiation or processing) by Shell New Orleans Federal Credit Union of any non-sufficient fund check or checks (or other item) does not obligate Shell New Orleans Federal Credit Union to pay any additional non-sufficient fund check or item or to provide prior notice of its decision to refuse to pay any additional non-sufficient fund check or item.

Pursuant to Shell New Orleans Federal Credit Union's commitment to always provide you with the best level of account holder service, now and in the future, if your consumer account (primarily used for personal and household purposes) has been open for at least sixty (60) days and thereafter you maintain your account in good standing, which includes at least:

A) Depositing the amount necessary to bring your account balance to a positive balance within every thirty (30) day period;
B) You are not in default on any loan or other obligation to Shell New Orleans Federal Credit Union and
C) Not caused the credit union a loss
D) You are not subject to any legal or administrative order or levy including bankruptcy notice
E) Not engaging in suspicious or abusive activity

Shell New Orleans Federal Credit Union will normally pay overdrafts within the overdraft privilege limits, but payment by Shell New Orleans Federal Credit Union is a discretionary courtesy and not a right or obligation. This privilege for consumer checking accounts will be limited to a maximum of $500 overdraft (negative) balances plus any NSF fees..

The total of the discretionary overdraft privilege (negative) balance, including any and all fees and charges, including all non-sufficient funds/overdraft fees is due and payable upon demand, and Depositor and each Authorized Signatory will continue to be liable, jointly and severally, for all such amount, as described in the Deposit Account Agreement and Disclosure.

Again, while Shell Federal Credit Union will typically pay overdrafts on accounts in good standing (as described above) payment is a discretionary courtesy, and not a right or obligation and Shell New Orleans Federal Credit Union in its sole and absolute discretion, can cease paying overdrafts at any time without prior notice of reason or cause.

May 2008