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What is a First Reserve?
A personal line of credit attached to your checking account on which you may draw at any time.

How does a First Reserve Work?
Simply write a check-your own personal check. If the check is larger than the balance in your account, funds will be automatically deposited to cover the overdraft. Such deposits are made in $100.00 increments (a $150.00 overdraft would be covered with a $200.00 automatic deposit.) You may "write yourself a loan" in this way as often as you like, so long as total borrowings do not exceed your approved credit limit.

What about Repayment?
Minimum monthly payments of 1/24th of your outstanding loan balance or a minimum of $10.00 (which includes finance charge) are made by automatic deduction from your checking account. If desired, you may make payments any time by cash or personal check. A statement showing loan advances, loan payments, total borrowings, finance charge and available credit is attached to your checking account statement each month.

Examples of Making Entries into your Checkbook Register

1. You received a notice in the mail that $300.00 was advanced on your FIRST RESERVE. In your checkbook register, record the $300.00 as a deposit (an addition).

2. Your bank statement arrives and shows an automatic payment of $12.50. Record the $12.50 as a debit (subtraction) in your checkbook register.

3. You write a check for $178.50 to pay off your FIRST Reserve. Record the $178.50 as a debit (subtraction) in your checkbook register.

You are not charged any finance charge until you actually have funds advanced on the FIRST Reserve. Interest is charged only on the money advanced. When you would like to make a payment other than the monthly automatic payment on the balance - (or payoff the balance) - be sure and SPECIFY that you would like to do so. Deposits to your checking account will NOT automatically pay on the FIRST RESERVE. The unused amount of your credit limit is always available to you, just by writing a check. The FIRST Reserve has a $15.00 annual fee that is automatically deducted from your account.

If you have any questions regarding this personal line of credit, feel free to ask any of the First National Bank staff and they will be pleased to help you or email us at info@fnbelkhart.com.