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Rate and Fee Schedule
The rates, fees and charges applicable to your account at the Credit Union are provided in this Rate and Fee Schedule. These may change periodically, Effective Date: May 1, 2008
FEES THAT APPLY TO ALL ACCOUNTS
ADDITIONAL FEES ON S/D-CHECKING ACCOUNTS
ATM Fees $1.50 per withdrawal after 4 free withdrawals each month. Other banks, etc. may charge a fee. Look for credit unions and especially the SC 24 or Co-Op Network symbols which are usually free of charge. Look for free ATM's in your area at www.co-opnetwork.org. Replacement cards cost $ 5.00.
ATM LIMITS Maximum of 3 withdrawals per day with $255.00 limit per day (off line $105.00).
VISA CREDIT DISCLOSURE This information was printed on October 1, 2006, and was accurate as of that date. This information is subject to change after it was printed. You should contact us for any change in this information since it was printed. You may write us at 215 E. 25th St., Holland, MI 49423 for this purpose.
CREDIT CARD AGREEMENT AND DISCLOSURES In this Agreement the words "you" and "your" mean each and all of those who agree to bound by this Agreement; "Card" means a Visa credit card and any duplicates, renewals, or substitutions the Credit Union issues to you; "Account" means your VISA credit card line of credit account with the Credit Union and " Credit Union" means the Credit Union whose name appears on this Agreement or anyone to whom the Credit Union transfers this Agreement. 1. Using Your Account. If you are approved for an Account, the Credit Union will establish a line of credit for you and notify you of your credit limit. You agree that your credit limit is the maximum amount (purchases, cash advances, finance charges, plus "other charges") that you have outstanding on your Account at any time. Each payment you make to your Account will restore your credit limit by the amount of the payment, unless you are over your credit limit. If you are over your credit limit, you must pay the amount you are over before payments will begin to restore your credit limit. You may request an increase in your credit limit only by a method acceptable to the Credit Union. The Credit Union has the right to reduce your credit limit, refuse to make an advance and/or terminate your Account at any time for any reason not prohibited by law. 2. Using the VISA Card. You may use your Card to make purchases from merchants and others who accept VISA Cards. In addition, you may obtain cash advances from the Credit Union and from other financial institutions that accept VISA Cards, and from some automated teller machines (ATMs), such as the VISA ATM Network, that accept VISA Cards. (Not all ATMs accept VISA Cards.) To obtain cash advances from an ATM, you must use the Personal Identification Number (PIN) that is issued to you for use with your card. You agree not to make or permit to be made any illegal transactions on your Account through the use of a Card, a Check or in any other manner. We may deny authorization for any internet gambling transactions. 3. Responsibility. You agree to pay all charges (purchases and cash advances) to your Account that are made by you or anyone whom you authorize to use your Account. You agree not to authorize anyone to use your Account without the prior written consent of the Credit Union. You also agree to pay all finance charges and other charges added to your Account under the terms of this Agreement or another agreement you made with the Credit Union. If this is a joint Account, Section 17 also applies to your Account. 4. Default. You will be in default if you fail to make any minimum payment or other required payment by the date that it is due. You will be in default if you break any promise you make under this Agreement. You will be in default if you die, file for bankruptcy or become insolvent, that is unable to pay your obligations when they become due. You will be in default if you make any false or misleading statements in any credit application or credit update. You will also be in default if something happens that the Credit Union believes may substantially reduce your ability to repay what you owe. When you are in default, the Credit Union has the right to demand immediate payment of your full Account balance without giving you notice. If immediate payment is demanded, you agree to continue paying finance charge, at the periodic rate charged before default, until what you owe has been paid, and any shares that were given as security for your Account may be applied towards what you owe. 5. Liability for Unauthorized Use-Lost/Stolen Card Notification. You may be liable for the unauthorized use of your Card. You will not be liable for unauthorized use that occurs after you notify the Credit Union, orally or in writing, of the loss, theft, or possible unauthorized use. In any case, your liability will not exceed $50. You can notify the Credit Union by calling (800) 828-3901, or writing to P.O. Box 8054, Plymouth, Michigan 48170-8054. 6. Security Interest. If you give the Credit Union a specific pledge of shares by signing a separate pledge of shares, your Account will be secured by your pledged shares. There is no other security for this Account, notwithstanding anything to the contrary in any other agreement. 7. Finance Charges. A Finance Charge will be imposed on Credit Purchases only if you elect not to pay the entire New Balance shown on your monthly statement for the previous billing cycle within 25 days from the closing date of that statement. If you elect not to pay the entire New Balance shown on your previous monthly statement within that 25-day period, a Finance Charge will be imposed on the unpaid average daily balance of such Credit Purchases from the previous statement closing date and on new Credit Purchases from the date of posting to your account during the current billing cycle, and will continue to accrue until the closing date of the billing cycle preceding the date on which the entire New Balance is paid in full or until the date of payment if more than 25 days from the closing date. FOR A VISA CLASSIC: The Finance Charge for a billing cycle is computed by applying the monthly Periodic Rate of .825% which is an Annual Percentage Rate, of 9.9% to the average daily balance of Credit Purchases, which is determined by dividing the sum of the daily balances during the billing cycle by the number of days in the cycle. Each daily balance of Credit Purchases is determined by adding to the outstanding unpaid balance of Credit Purchases at the beginning of the billing cycle any new Credit Purchases posted to your account, and subtracting any payments as received and credits as posted to your account, but excluding any unpaid Finance Charges. FOR A VISA PLATINUM: The Finance Charge for a billing cycle is computed by applying the monthly Periodic Rate of .7416% which is an Annual Percentage Rate of 8.9% to the average daily balance of Credit Purchases, which is determined by dividing the sum of the daily balances during the billing cycle by the number of days in the cycle. Each daily balance of Credit Purchases is determined by adding to the outstanding unpaid balance of Credit Purchases at the beginning of the billing cycle any new Credit Purchases posted to your account, and subtracting any payments as received and credits as posted to your account, but excluding any unpaid Finance Charges. A Finance Charge will be imposed on Cash Advances from the date of the Cash Advance or from the first day of the billing cycle in which the Cash Advance is posted to your account, whichever is later, and will otherwise be calculated in the same manner as explained above for Credit Purchases. If you have authorized us to pay your credit card bill automatically from your savings or checking account, you can stop the payment on any amount you think is wrong. To stop the payment your letter must reach us three business days before the automatic payment is scheduled to occur. Your Rights and Our Responsibilities After We Receive Your Written Notice We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the bill was correct. After we receive your letter, we cannot try to collect any amount you question, or report you as delinquent. We can continue to bill you for the amount you question, including finance charges, and we can apply any unpaid amount against your credit limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your bill that are not in question. If we find that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. If we didnt make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the questioned amount. In either case, we will send you a statement of the amount you owe and the date it is due. If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you and you write to us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it finally is. If we dont follow these rules, we cant collect the first $50 of the questioned amount, even if your bill was correct. Special Rule for Credit Card Purchases If you have a problem with the quality of property or services that you purchased with a credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the property or services. There are two limitations on this right: (a) You must have made the purchase in your home state, or if not within your home state within 100 miles of your current mailing address; and (b) The purchase price must have been more than $50. These limitations do not apply if we own or operate the merchant, or if we mailed you the advertisement for the property or services.
ELECTRONIC FUND TRANSFER AGREEMENT This agreement is between the Credit Union Member (designated as "you, your") and Big Dutch Fleet Credit Union (designated as "we, us, our"):
Dear Member: This Electronic Fund Transfer Agreement describes the type of electronic fund transfer (īEFTī) services that we provide. This Agreement should be reviewed carefully, since it informs you of the terms and conditions which apply to these services. Should any inconsistencies exist between these terms and conditions and the general rules and regulations of your deposit account(s), these terms and conditions govern with regard to EFT services. Please keep this Agreement for future reference. TYPES OF SERVICES Accounts Affected: Each of the following types of accounts in the credit union can be subject to some kind of "electronic fund transfer" service: *Regular Share account, *Share Draft Account, *Christmas Club (deposits only), *Money Market Account These types of accounts are sometimes referred to in this Agreement as "asset account(s)" or simply as your "account(s)". You have previously designated which of your account(s) you want to be subject to a particular type of electronic fund transfer service. You may change those instructions in the future, and we will follow your new wishes to the extent our electronic fund transfer programs permit at that time. Automated Clearing House Transfer Services: We offer preauthorized EFT services through the Automated Clearing House System. We are able to electronically transfer funds from your account(s) to accounts at other financial institutions or receive funds electronically from other financial institutions for deposit in your account. Because you must authorize such transfers in advance these transfers are called "Preauthorized Transfers". Some of the services offered as preauthorized transfers are direct deposit of payroll, social security and other government payments and automatic bill payment services. Electronic Fund Transfer Service: At the present time, the following types of electronic fund transfers to or from your account(s) in the credit union may be authorized: Transfers To your account(s) (credits): Transfers FROM your account(s) (debits): In order to assist us in maintaining the security of your account and the terminals, the Card remains our property and may be revoked or cancelled at any time without giving you prior notice. You agree not to use your Card for a transaction that would cause your account balance to go below zero. We will not be required to complete any such transaction, but if we do, you do agree to pay us the amount of the improper withdrawal or transfer upon request. The Card may only be used with your Personal Identification Number ("PIN"), which is used to identify you as so authorized user of the Card. Because the PIN is used for identification purposes, you will agree to notify us immediately if the Card is lost or if the secrecy of the PIN is compromised. You also agree not to reveal your PIN to any person not authorized by you to use the Card. The security of your account depends upon you maintaining possession of your Card and the secrecy of your PIN. Network: Besides being able to use your electronic fund transfer card at ATM terminals, you may access your accounts at the following networks: SC24, NYCE, MAC, Member Access, Cirrus and Alliance 1. Documentation of Transfers: Terminal Transfers: You will get a receipt at the time you make any EFT transaction (unless you request otherwise) to or from your account at an ATM terminal or a Participating Merchant. Preauthorized Transfers: If you have arranged to have direct deposits made to your account at least once every sixty (60) days from the same person or company, you can call or write us to find out whether or not the preauthorized deposit has been made to your account at the telephone number and address appearing on your periodic statement or as shown on this Agreement. Statements: Your Right to Stop Payment of Preauthorized Transfers: Rights and Procedures to Stop Payments: If you have told us in advance to make regular payments out of your account, you can stop any of these payments. Hereīs how: CALL US AT: (616) 396-5000 OR WRITE US AT: Big Dutch Fleet Credit Union 215 E. 25th Street Holland, MI 49423 In time for us to receive your request three (3) business days or more before the payment is scheduled to be made. If you call, we may also require you to put your request in writing and get it to us with fourteen (14) days after you call. The fee for handling such stop payment orders is disclosed in a separate Fee and Service Charge Schedule. Notice of Varying Amounts: If these regular payments may vary in amount the person you are going to pay will tell you, (10) days before each payment, when it will be made and how much it will be. You may choose instead to get this notice only when the payment would differ by more than a certain amount for the previous payment, or when the amount would fall outside certain limits that you set. Liability for Failure to Stop Payment of Preauthorized Transfer: If you order us to stop one of these payments three (3) business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages. In Case of Errors or Questions About Your Electronic Fund Transfers: Call us at (616) 396-5000 or write to the address appearing on your periodic statement or as indicated above as soon as you can if you think your periodic statement or receipt is wrong, or if you need more information about a transaction listed on the periodic statement or receipt in order to assert an error. We must hear from you no later than sixty (60) days after we send the FIRST periodic statement on which the problem or error appeared. You must do all of the following: 1. Tell us your name and account number 2. Describe the error or transfer you are unsure about and explain as clearly as you can why you believe it is an error or why you need more information. 3. Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days. We will determine whether an error occurred within 10 business days (20 business days if the transfer involved a new account) after we hear from you and will correct an error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account, a point of sale transaction, or a foreign-initiated transfer) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days (20 business days if the transfer involved a new account) for the amount you think is an error, so that you have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. An account is considered a new account for 30 days after the first deposit is made, if you are a new customer. We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask us for copies of the documents that we used in our investigation. Clearing of Deposits: Deposits made at an ATM whether in cash, check, draft or money order are subject to our Funds Availability Policy, which has either been provided to you at the time of opening the account or has been mailed to you. If you do not have a copy of our Funds Availability Policy, please contact us and we will make a copy available to you. Crediting Payments: Payments made at ATMs whether in cash, check, draft or money order are subject to verification and the posting of such payment to a loan account may be delayed until the funds can be collected. Responsibility for Overdraft: If you obtain cash from an ATM or withdraw via a Point of Sale transaction which creates an overdraft in your regular share or share draft account(s), the overdraft amount is due and payable the moment you get it and you agree to pay the full amount of it to us, together with the service charge, if applicable. You also authorize us in such a case, to apply from any other share account, share draft account, club account or line of credit you may have in the credit union such amount as to be necessary to pay the overdraft amount and service charge. Notice of Loss or Theft: If you believe your Card has been lost or stolen or that someone has transferred or may transfer money from your account without your permission, CALL (616)396-5000 OR WRITE Big Dutch Fleet Credit Union 215 E. 25th Street, Holland, MI 49423 Consumer Liability: Tell us AT ONCE if you believe your Card has been lost or stolen. Telephoning is the best way of keeping your possible losses down. You could lose all the money in your account (plus your maximum overdraft line of credit). If you tell us within two (2) business days, you can lose no more than $50.00 if someone used your Card without your permission. If you do NOT tell us within (2) business days after you learn of the loss or theft of your Card, and we can prove we could have stopped someone from using your Card without your permission if you told us, you could lose as much as $500.00. Also if your statement shows transfers you did not make, tell us at once. If you do not tell us within sixty (60) days after the statement was mailed to you, you may not get back any money you lost after the sixty (60) days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or hospital stay) kept you from telling us, we will extend the time period. Reversal of Transaction: We will reverse an Retransfer Resulting from a point of sale transaction at a Participating Merchant in Michigan and recredit your account for the full amount of the transfer it all of the following occur: 1. You must provide us notice of having made a good faith attempt to seek redress and make an assurance to us of the return to the Participating Merchant of related goods in dispute, where returnable goods are involved. 2. The amount of the transacting is $50.00 or more. 3. Within four (4) calendar days following the transaction, we receive from you during our normal business hours, a written or oral request for the reversal. 4. You verify the reverse order, notice and assurance in writing within fourteen (14) calendar days following oral notification, on a form to be provided by us for that purpose. If written verification is not furnished, we shall reinstate the original debits and credits involved in the transaction to the extent of the available account balance. Disclosure of Account Information to Third Parties: We will disclose information to third parties about your account or the transfers you make: 1. where it is necessary for completing transfers; or 2. in order to verify the existence and condition of your account which although electronic in nature, do not constitute "electronic fund transfers" described above. SERVICE LIMITATIONS Minimum Balance: You must always maintain a minimum of $5.00 in a Regular Share Account to be entitled to make "Electronic Fund Transfers" affecting your account. We reserve the right to increase the minimum balance requirement or to imposed other restrictions in the future, but if we do so, we will give you at least 21 days advance written notice. Limitation on Number of Transfers: A maximum of five (5) transactions will be allowed per day. You will be limited to three (3) cash withdrawals from ATM terminals each day. Limitations on Dollar Amounts of ATM and Point of Sale Transfers: 1. You may only withdraw limited cash of $255.00 from terminals each day. $105.00 if offline. 2. You may only withdraw and buy up to $255.00 worth of goods each day in point of sale service. Charges: All charges related to electronic fund transfers are: 1. Four free transactions will be allowed per month Transactions exceeding the four free ones will cost: a $1.50 per transaction of any bank charge. 2. Cards will be issued at no charge to the member. Lost or stolen cards will be replaced at a cost of $5.00 per card. RIGHTS AND RESPONSIBILITIES Notification of Regulatory Authorities: This Agreement and the EFT services provided in the Agreement are governed by Michigan law. You may notify the federal or state agency noted below of any violation of law. The address of these two agencies are as follows: The address of this agency is as follows: Credit Union Division Financial Institutions Bureau 333 S. Capitol, Suite A P.O. Box 30224 Lansing, Michigan 48909-0224 OR National Credit Union Administration 1775 Duke Street Alexandria, Virginia 22314 Business Day: For the purpose of this Agreement, a "Business Day" is defined as Monday through Saturday, except Holidays. Electronic Fund Transfer Card: If you have received an electronic fund transfer card ("Card") from us for the type of terminal transfers noted previously, the following provisions are applicable: Your Card can be used at any ATM terminals whose symbol appears on your card. (see Network.) Also, if noted under the types of transfers, you may use your Card to purchase goods and services from merchants who have arranged to accept you Card as a means of payment (these merchants are referred to as "Participating Merchants"). Some Participating Merchants may permit you to receive cash back as part of your purchase. Purchases made with your Card including any purchase where you receive cash, are referred to as a point of sale transactions and will cause your account to be debited for the amount of the purchase. Automated Teller Machine (ATM) Transactions: If you have an ATM card for which we have issued a Personal Identification Number (PIN), you can use it to make any or all of the following transactions at any automated teller machine network which is a part of an electronic fund transfer service network to which we belong (Some transactions listed below may not be available to all networks): Point of Sale Transactions: If you have an ATM card for which we issued you a PIN, you may also use it to purchase goods or services from merchants who have arranged to accept your ATM card as a means of payment. These merchants are referred to as "Participating Merchants" and will display a logo or other symbol that identifies them as a merchant who will accept your card, i.e. ML Pay. Purchases made with your ATM Card, including any purchase where you receive cash back, are referred to as "point of sale" transactions or "POS" transactions and will cause your share draft account to be debited for the amount of the purchase. Only SHARE DRAFT/CHECKING accounts may be used in connection with point of sale transactions performed with your ATM card. Telephone Audio Response Services: You may also call the credit union and, upon furnishing the credit union with information to identify yourself, transfer money between your accounts, transfer from your account(s) to another personīs account within the credit union, and verify balance inquiries with specified accounts you have with us. You have previously told us which of these electronic fund transfer services you want to use. You can discontinue use of any such service whenever you want to. If you begin using a different electronic fund transfer service after receipt of this Agreement, we must be notified of the account (s) to be affected. We may make additional types of electronic fund transfer services available in the future. We may also discontinue one or more of our electronic fund transfer services, but if we do that, we will give you at least 21 days advance notice in writing. Excluded Transactions: We have developed an elaborate electronic data processing system which makes it possible to offer you many electronic services. However, some of these services do not constitute "electronic fund transfers" for the purposes of this Agreement such as, for example, automatic transfers, from your account(s) to pay your loan(s) owing to us; and automatic services and transfers which are "electronic fund transfers" as described above. They do not apply to other transactions. For a third party, such as a credit bureau or merchant; or in order to comply with government agency or court orders: or if you give us your written permission. Liability for Failure to Complete EFT Transfers: If we do not properly complete an EFT transfer to or from your account on time or in the correct amount in accordance with the terms of this Agreement, we will be liable for your losses or damages. However, there are some exceptions. We will NOT be liable for instance: **If through no fault of ours, you do not have enough money in your account to make the transfer. **If we have terminated this Agreement or the transaction would have exceeded your established credit line. **If the terminal or any part of the system supporting the operation of the terminal was not working properly, and you knew of the breakdown when you began the transaction or at some time during the process of the transaction. **If the terminal where you attempted to make the transaction did not have enough cash to allow the transaction. **When your Card has been reported lost or stolen or we have reason to believe that something was wrong with the transaction. **When we receive inaccurate or incomplete information needed to complete a transaction. **If any necessary authorization for completing the EFT transfer has been revoked by an operation of law. **In the case of preauthorized transfers, we will not be liable where there was a breakdown of the system which would normally handle the transfer at the time the transfer would have occurred. **There may be other exceptions provided by applicable law. Amendments: We may change or amend any of the terms and conditions of this Agreement at any time upon at least twenty-one (21) days written notice to you prior to the effective date of any change or amendment. If you do not agree to abide by a change or amendment, you must notify us of the fact prior to the effective date of the change or amendment. You must also surrender your Card and cancel this Agreement. Termination of Prior Agreements: Upon your receipt of this Agreement, this Agreement terminates and takes the place of any earlier electronic funds transfer agreements provided to you from us. Effective Date: The effective date of this Agreement is August 1, 2000. TRUTH - IN - LENDING DISCLOSURE The wording has been kept as clear and simple as possible. Even so, you may have questions. If you do, please call or write us.
In this contract, the word "you" refers to and includes, where appropriate, all persons who sign this contract. "We" or "us" refers to the Credit Union. There is a U.S. law called the Truth-in-Lending Act. It requires lenders to tell borrowers certain things about consumer loans they make - in other words, to make a disclosure. This document is not only a contract - it is also such a Truth-in-Lending disclosure. 1.How You Ask for Advances Under This Contract By signing this contract, you are applying for a Line of Credit loan plan. Your application must be approved before you can borrow under the plan. Once you have been approved, you can request advances under this contract in person, by telephone or by mail. Advances can also be requested by means of a share draft, since the signature on the draft is a signed request for an advance. If we have furnished you with an automated teller machine (ATM) card, your use of the card and the personal identification number (PIN) assigned to you to get an advance under this contract from an ATM is also your signature for purposes of getting that advance. If you want us to, we will keep the balance under this contract as separate "loan accounts" on our records. 2. When Advances Are Given The total owing under this contract at any one time may not exceed the amount stated below. However, money can be borrowed under the contract in one or more advances from time to time. Generally, we will make advances to you under this contract if: 1. The total amount owing after the advance doesnīt go over the limit stated below; 2. Any papers requesting the advance are filled out completely and correctly; and 3. You are up to date on all your loans with us. Nevertheless, we have the right to refuse any advance you may ask for or to cancel the contract, if: 1. We decide that the credit rating or debt-paying ability of anyone who signed this contract is no longer satisfactory; 2. You break any promises made in this contract; or 3. We decide there is other good cause. If this should occur, we will give you written notice by first-class mail sent to your last address on our records. The notice is effective when mailed. 3. Promise to Pay Back with Finance Charge By signing this contract, you promise to pay back to the Credit Union all money that anyone borrows under this contract plus FINANCE CHARGE figured at a rate of .04109% per day, which corresponds to an ANNUAL PERCENTAGE RATE of 15%. And you make this promise not only for yourself but jointly with each other person who signs this contract. FINANCE CHARGE is the same thing as interest. It is the charge we make for your use of the money we lend you. Figuring Out the Principal Balance We charge FINANCE CHARGE (that is, interest) only on that part of the money you borrowed that is still owing when you make a payment. This is called the "principal balance." Each seperate loan account under this contract has a separate "principal balance." We figure out the "principal balance" this way: 1. When you borrow money, we add it to the unpaid part of amounts (if any) you previously borrowed on that loan account; 2. When you make a payment on a loan account, we deduct from the unpaid part of amounts you previously borrowed on that loan account the part of the payment that exceeds late charges (if any) and FINANCE CHARGE (interest) then due on the account. As you can see, the "principal balance" on each loan account keeps changing. The "principal balance" could be several different numbers during a specific period of time like a month or a calendar quarter. Figuring Out the Finance Charge FINANCE CHARGE (interest) begins to run on each advance under this contract from the date it is posted to a loan account on our records. We determine the amount of FINANCE CHARGE (interest) at the time a payment is made, by multiplying: 1. The daily rate of .04109%, times 2. Each seperate "principal balance" on the loan account since the last payment, times 3. The number of days each separate "principal balance" was owing and then adding up the results. In this way, we only charge FINANCE CHARGE (interest) on the "principal balance" for the actual number of days you owe that particular "principal balance." In the rest of this contract, we will use the word "interest" instead of FINANCE CHARGE. 4. Extra Charge for Late Payment We have the right to make an extra charge if you donīt make your payment on time. If we do, the maximum charge will be as indicated on the front page of this contract. You should always make your payment on time. That way you will avoid any chance of having to pay a late charge. 5. How You Pay Us Back You must pay back the money you borrow from us, plus interest, in monthly payments. A payment is due every month, even if you have previously made extra payments. The payment is due each month on the day stated on the front page of this contract. We call this the "due date." The amount of the minimum monthly payment on each loan account is also stated on the front page. There is one exception to the "due date" we mentioned above. We you get the first advance on a loan account under this contract, the first payment wonīt come due in the month you get that advance - it comes due the following month. 6. How Your Payments Are Applied Each time you make a payment on a loan account under this contract, it goes FIRST, to pay late charges, if any; SECOND, to pay interest then owing; and THIRD, to reduce the "principal balance" on the loan account. If the payment isnīt enough to cover late charges (if any) and interest then due, the unpaid part of the late charges or interest will be taken out of your later payments. It wonīt be added to the "principal balance." That way we donīt compound interest you owe, or charge interest on late charges. 7. Paying Off Early The payments we told you about in Section 5 are minimum payments. Of course, you are allowed to make larger payments if you want to. And you can pay off any loan account under this contract, in full or in part, at any time. Any of these steps will result in your paying less interest, thus saving you money. There is no penalty or charge of any kind for paying off all or part of a loan account early. Even if you do make some extra payments or some early payments, you still must make at least the minimum payment every month until the account is paid in full. If you want to pay ahead and then skip some payments, you must make special arrangements with us. 8. Your Savings Are Security for This Contract By signing this contract, you give us a security interest - called a "pledge" - in all present or future shares or deposits in the Credit Union which you have the right to withdraw for your personal use. If you fail to make your payments when due, we can take money from your shares or deposits to make any payments that are past due, as well as any late charges. While your payments are up-to-date, you can withdraw from your savings even though they are "pledged" to us. But if you withdraw all your shares, you are no longer a member and you canīt get any new advances under this contract. We waive any security interest for any amount owing under this contract except for the pledge of your savings. 9. Protecting Certain Savings Under the law which regulates the Credit Union, we have certain rights against your shares or deposits. By signing this contract, you give us certain other rights in your savings as explained in Section 8. Nevertheless, none of these rights will apply against any shares or deposits that are part of an Individual Retirement Account (IRA) or a Keogh Plan. This provision assures that by signing this contract you donīt risk losing tax advantages tied to these kinds of savings. 10. Cosigners-Guarantors A person who signs this contract even though he or she cannot borrow under it is called a "cosigner-guarantor." A "cosigner-guarantor" who signs this contract is liable to us for all advances we make under the contract from the time he or she signs it until those advances are paid in full, no matter how long it takes. If a "cosigner-guarantor" wants to stop his or her responsibility for advances under this contract, that person must give us a written notice telling us that. Then that person wonīt be responsible for any new advance you get after we receive the notice. But, of course, he or she stays liable for advances that were made before we got the notice. If a "cosigner-guarantor" signs this contract, he or she permits us to do any of the following things under this contract without first telling him or her about it: 1. Make one or more advances to you; 2. Extend the due date of any payment you owe; 3. Reduce your monthly payment; 4. Allow you to withdraw any of your savings; 5. Release some other "cosigner-guarantor"; 6. Take additional "cosigner-guarantors." 11. What Happens in the Case of Default You are in "default" if: 1. You fail to make a minimum monthly payment when it is due, or 2. You break any other promise you make in this contract. When this happens, we have certain rights which are designed to help us collect what you owe us. These rights are set out in this section. Lawsuit When you are in "default", we can sue you in a court of law. We can also sue anyone who signs this contract as a "cosigner-guarantor." Or we can do both. Full Payment Due Immediately If you are in "default," we can also demand that you immediatly pay us the entire amount then still unpaid on all your loan accounts under this contract, plus interest and late charges, if any. We donīt have to give you any advance notice if we decide to do this. Once we have done this, you lose your right to make monthly payments under the contract and you must pay us in full right away. Right to Your Savings When you are in "default", we have certain rights to your savings. These have already been explained in Section 8. 12. Miscellaneous Provisions What Happens if the Contract is Cancelled? In Section 2, we told you about our rights to refuse advances you ask for and to cancel this contract. You also can cancel this contract if you want to. But even if the contract is cancelled or an advance is refused, you still must pay us all the money you owe under this contract plus interest and any late charges, and you are still required to follow the repayment terms set out in this contract. The same is true for any "cosigner-guarantor" who signs this contract. Can We Check Your Credit? Yes. By signing this contract, you permit us to make such investigation from time to time as we think is necessary concerning your employment, your credit standing and your financial responsibility. Your signature also permits us to tell credit rating bureaus and other creditors about our experience with you, such as, if you make your payments on time. Who Keeps the Contract? In order to comply with certain laws, the original of this contract with your signature(s) on it must be kept by the Credit Union. However, you have been furnished with an exact unsigned copy of this contract to keep your records. If you lose your copy, give us a call and we will send you another. Can This Contract Be Changed? Yes it can! We need this power because this contract may last for many years and economic conditions will change during that time. So we can, for example, increase the interest rate (though not above the maximum rate allowed by law), increase the minimum monthly payment, or change the credit limit. Changes we make will apply to new advances you get after the date of the change. Changes which affect you adversely (for example, an increase in the interest rate) may also apply to amounts you already owe if you get a new advance after such a change has been made. Of course, we will only make changes the law permits. If the law requires an advance notice of a change, we will mail the notice to the last address we have for you in our records and will follow any other procedures the law requires. Does the Credit Union Have to Enforce Its Rights? Sometimes, in order to help you over a trouble spot, we may tell you itīs okay to be late with a payment, or to skip a payment, or send in a part-payment, and so on. And sometimes we may simply accept payments a little bit late and not say anything about it. However, if we do any of these things, or if in any other way we fail to insist that you strictly observe a promise you have made in this contract, we still have the right to insist thereafter that you do keep your promises strictly. For example, we may let you send in payments 5 to 10 days late for several months and not say anything, but we still have the right to require you to make later payments on time, or to start adding late charges even though we didnīt do that before. YOUR BILLING RIGHTS KEEP THIS NOTICE FOR FUTURE USE This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act. Notify Us in Case of Errors or Questions About Your Statement If you think your statement is wrong, or if you need more information about a transaction on it, write us on a separate sheet at the address listed on the statement. Write to us as soon as possible. We must hear from you no later than 60 days after we sent you the first statement on which the error or problem appeared. You can telephone us, but doing so will not preserve your rights. In your letter, give us the following information: Your Rights and Our Responsibilities After We Receive Your Written Notice We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the statement was correct. After we receive your letter, we cannot try to collect any amount you question, or report you as delinquent. We can continue to send you statements which reflect the amount you question, including finance charges, and we can apply any unpaid amount against your credit limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your outstanding balance that are not in question. If we find that we made a mistake on your statement, you will not have to pay any finance charges related to any questioned amount. If we didnīt make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the questioned amount. In either case, we will send you a statement of the amount you owe and the date that it is due. If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you and you write to us within ten days telling us that you have a question about your statement. And, we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it finally is. If we donīt follow these rules, we canīt collect the first $50 of the questioned amount, even if your statement was correct. as required by the USA PATRIOT ACT IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: * When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. * We may also ask to see your driver's license or other identifying documents. We thank you for your understanding and for joining us in securing a safer tomorrow.
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