Agreeing with Timeline - check your institution's agreements and disclosures. At my bank we do allow customers to withdraw off of their bounce protection (we also have an overdraft protection, which is an overdraft LOC and totally different). However, they are charged the standard NSF fee for doing so and are made aware of the fact that they will be charged, and can only do it so much and up to a certain amount. Abuse of bounce protection or going over their bounce protection limit (for example, say we give them $600.00 in BP, they cash a check for $500.00 under their bounce protection, but then write a $300.00 check to the utility company too, which results in the overdraft being more than the BP will cover, especially if it's a common occurrence) results in it being revoked.
_________________________
"Some of the most wonderful people are the ones who don't fit into boxes." -Tori Amos
---
Opinions are my own.