What is the Banks position regarding overdrafts on a members IDEAL Way account?
The Bank strongly discourages members from overdrawing their IDEAL Way account beyond the amount of their IDEAL Way line of credit. These overdrafts present potential liquidity and credit risks to the Bank. Therefore, each member should maintain an IDEAL Way line of credit that is sufficient to cover anticipated shortfalls in the collected balance of the member’s IDEAL Way account to avoid such an overdraft. The Bank does not charge members a fee to establish or maintain an IDEAL Way line of credit. The IDEAL Way line of credit is overdraft protection for your account. The Products Policy notes that, “Members that have obtained an IDEAL Way line of credit may overdraw their IDEAL Way demand-deposit account and get an automatic IDEAL Way advance to cover the overdraft. The Bank typically approves an IDEAL Way line of credit equal to two percent of a member’s assets.” Members are required to pledge sufficient collateral to the Bank to secure their IDEAL Way line of credit at all times, i
