NY A08319

Caps overdraft fees charged by state-chartered banks, trust companies, savings banks, savings and loan associations, and credit unions at the greater of $5 or the institution's actual pro rata costs and losses for providing non-covered overdraft credit

Defines "non-covered overdraft credit" as overdraft credit not subject to the federal Truth in Lending Act (Regulation Z), and "overdraft credit" as consumer credit extended to cover transactions when account funds are insufficient

Requires institutions calculating their allowable fee to include only costs specifically traceable to overdraft services, such as cost of funds, net charge-off losses, and program operating expenses

Excludes general overhead costs and losses from unauthorized use, electronic fund transfer errors, billing errors, returned deposit items, or rescinded provisional credit from the fee calculation

Allows institutions to calculate costs based on the prior calendar year, any 365-day period beginning in the prior year, prior four financial quarters, or prior accounting year