Setting Up Overdraft Protection

Complete the following tasks to set up overdraft protection for loan drafts:

1. Using the Loan Profiles tabs, set up a 2-digit loan type for overdraft loans. Determine if the loan type will be recalculating or non-recalculating.
2. Identify a note number, up to 6-characters, to be used for every member overdraft loan. Determine the increments to be used to transfer funds from the overdraft loan account. Portico Services will specify the note number and increments on the Credit Union Profile - Shares tab. The Overdraft Protection section on the Credit Union Profile - Shares tab supports line of credit loans via overdraft protection.
3. Instruct Portico Services to add the 2-digit loan type for the overdraft loan to the 930 Report Rules.

To set up a member loan for overdraft protection, complete the following steps:

1. Set up an open-end loan using the New Loan –Setup tabs. The loan should have a zero balance and valid credit limit, specified in whole dollars.
2. On the Shares – Draft Info tab for the share draft account that will have overdraft protection, you can use the Overdraft Information grid to select multiple overdraft accounts. To add an overdraft account, enter the member number in the Member Number column. Click the member lookup button to open the Member Search window and locate a member. Then, click the Member Account down arrow to select the loan note number.