Overdraft Protection Personal Line of Credit
Disclosure Statement and Agreement
|
Annual
Percentage Rate (APR): |
18.00% (Daily Periodic Interest Rate: 0.04931%) |
|
Balance Computation Method |
Daily ending balance. |
|
Grace Period for Repayment of Credit Advances: |
None. Interest accrues on each credit advance from
the date the extension of credit is posted to your Overdraft Protection
Line of Credit until the date the advance is paid in full. |
|
Minimum Monthly Payment: |
The greater of 5% of outstanding balance or $25. Any outstanding balance less than $25 is
due and payable in full. |
|
Minimum Finance Charge: |
None |
|
Annual Fee: |
$25 |
|
Transaction Fee for Each Credit Advance: |
$5 |
|
Transaction Fee for Telephone |
$2 |
|
Late Charges: |
5% of monthly payment amount for payments made
10 days or more after the due date; minimum late charge is $1; maximum
late charge is $5 |
|
How To Repay Your Loan: |
You may pay your outstanding Overdraft Protection
balance and finance charges at any time by transferring funds via
Telephone Banking or by mailing in a payment. Otherwise, the minimum
payment amount will automatically be deducted from your checking
account on the date of your checking account statement. |
The undersigned (hereinafter "Borrower", "you" or "your") has applied for an Overdraft Protection Personal Line of Credit account (the "Advance Account") at New South Federal Savings Bank (hereinafter "we," "us," "our," or "Bank"), in the amount approved by Bank and confirmed in writing to Borrower (herein after called the "MAXIMUM CREDIT"). PLEASE READ THIS AGREEMENT CAREFULLY AND RETAIN IT FOR FUTURE REFERENCE. By using your Advance Account, Borrower agrees to the terms of this Agreement and agrees to be bound by it.
1. Use of Advance Account. Bank will advance funds to or for Borrower from the Advance Account into your designated Checking Account at Bank ("Checking Account") in multiples of $100.00, whenever payment by Bank of any debit would otherwise result in an overdraft in the Checking Account. All loans and advances from the Advance Account are referred to in this Agreement as "Loans".
2. Credit Limit. You will be advised of your Maximum Credit. Bank may increase or decrease the Maximum Credit at any time and at the Bank's discretion. Borrower promises not to attempt to obtain Loans that would exceed the Maximum Credit. If Bank elects to make any Loan that causes the Maximum Credit to be exceeded, Borrower shall immediately and without demand pay such excess to Bank.
3. Finance Charges and Balance Computation Method. Borrower will pay to Bank the principal amount of Loans made under this Agreement together with a FINANCE CHARGE on the unpaid principal balance in accordance with the terms of this Agreement. The FINANCE CHARGE for each monthly billing period is determined by applying a daily periodic rate of 0.04931% (which corresponds to an ANNUAL PERCENTAGE RATE of 18.00%) to each day's ending Loan balance. The daily Loan balance shall be computed by taking the principal balance of Loans at the beginning of each day, adding any Loans posted to the Advance Account that day and subtracting any principal payments posted to the Advance Account on that date. The FINANCE CHARGE begins to accrue on the date a Loan is posted to the Advance Account.
4. Payments. Each month, an amount equal to 5% of the outstanding balance of the Advance Account, or $25, whichever is greater, will automatically be deducted from the Checking Account, on the Checking Account statement cycle date. Any Advance Account outstanding balance less than $25 is due and payable in full and will be deducted from the Checking Account. You agree to pay the minimum amount each month, plus all amounts past due. Borrower shall also pay any Loan balance in excess of the Maximum Credit.
The minimum payment will be due and automatically deducted from Borrower's Checking Account on the designated Checking Account statement date, which is also the Advance Account statement cycle date. All payments received will (to the extent sufficient) be applied to billed and unpaid annual fee and other fees and charges, if any, billed to the Advance Account; next to Loans in excess of the Maximum Credit, if any; next to billed but unpaid finance charges; and then to principal of Loans in the order in which they were made.
By signing the Advance Account application or by indicating your acceptance during an online account opening approval process, or by using your Advance Account, you authorize us to deduct the minimum payment from your designated Checking Account on the monthly statement cycle date. Only the minimum payment will be deducted from your Checking Account. If your designated Checking Account balance does not equal or exceed the minimum payment due, we may (at our discretion and from time to time) debit your Checking Account and disclose the debit on the next designated Checking Account statement.
If your Checking Account is not Internet accessible, paper statements for your Checking Account and Advance Account transaction history will be mailed free of charge. If your Checking Account is Internet accessible, Checking Account statements are available online, free of charge and paper copies of Checking Account statements are only available if a monthly service charge of $5 is paid by automatic debit from the Checking Account. Transaction history for the Advance Account is NOT available online; only the inflow of credits and debits detailed in the online transaction history of the designated Checking Account will be available online to track credits and debits to the Advance Account. If your Checking Account is Internet accessible, Advance Account transaction history is ONLY available in paper copy form upon payment of a monthly service charge of $5, which is paid by automatic debit from the designated Checking Account.
Payments may not be made by drawing on the Advance Account directly or indirectly.
We can accept late payments or partial payments, or drafts, checks or money orders marked "payment in full" without losing any of our rights under this Agreement.
5. Prepayments. The Loan balance plus additional FINANCE CHARGES accrued to date of payment may be prepaid in whole or in part without penalty. Amounts owing may be prepaid by payment other than by an automatic charge to your Checking Account if the payment is accompanied by appropriate instructions to insure proper credit to the Advance Account. A deposit into Borrower's Checking Account will increase your Checking Account balance and will NOT reduce the balance of your Loans. If a partial prepayment is made leaving an unpaid Loan balance, the Bank will continue to deduct the minimum monthly payment from your Checking Account.
6. Annual Fee. A non-refundable annual fee of $25.00, payable in advance for the privilege of having an Advance Account, will be billed to you when the Advance Account is opened. The annual fee will be deducted from Borrower's Checking Account.
7. Late Charges. Borrower agrees to pay a "late charge" not to exceed 5% of each monthly payment amount for payments received 10 days or more after the due date. There is a minimum late charge of $1.00 and a maximum late charge of $5.00. This late charge is to cover the extra expense involved in following up and handling delinquent payments.
8. Business Days. Payments received at the Bank by 4:00 p.m. CST, Monday through Friday, excluding federal holidays, will be credited to the Advance Account as of that day. Payments received after such times or on a non-processing day, will be credited as of the next succeeding Bank processing day.
9. Credit Information You authorize us to release information concerning your credit record and standing to other creditors, credit bureaus, consumer reporting agencies and other credit reporters. Upon our request at any time, you agree to furnish or cause to be furnished such financial information as we may request on your financial condition or that of your guarantor.
10. Defaults and Acceleration. This Agreement shall be in default if Borrower fails to make any payment due hereunder, changes his or her address without written notice to Bank, dies, becomes bankrupt or insolvent, or if any other act or event occurs by reason of which Bank reasonably deems itself insecure. Upon default, Bank at its option may declare all amounts owed to Bank by Borrower under this Agreement to be immediately due and payable, and our commitment to make any further Loans hereunder shall terminate without any further notice. If Borrower fails to pay amounts owing Bank when due and it becomes necessary to commence legal proceedings against Borrower, you will be required to pay reasonable attorneys' fees and court costs. In addition, upon default by Borrower, any and all amounts (such as deposit balances) due from Bank to Borrower may be offset and applied in satisfaction of your obligations to Bank under this Agreement. We have a general lien arising by operation of law upon all goods, instruments, documents, deposit accounts and chattel paper belonging to you while such is in our possession. Such lien rights are in addition to any other contractual lien you may grant to UmbrellaBank.com in any of your other property. Loans from the Advance Account will not be secured by collateral securing any other loan from Bank to Borrower.
We
may report information about your account to credit bureaus. Late payments,
missed payments, or other defaults on your account may be reflected in
your credit report.
11. Termination. This Agreement may be terminated by the Bank at any time effective immediately upon mailing to Borrower, at the address shown for you on our records, written Notice of Termination. Borrower may terminate this Agreement at any time effective upon receipt by Bank of at least 15 days prior written notice. Should Borrower elect to cancel this Agreement, written notice should be sent to: New South Federal Savings Bank, 2000 Crestwood Boulevard, Birmingham, Alabama 35210. If your Agreement is canceled, or your Checking Account is closed, the entire Advance Account balance and all amounts not yet billed are immediately due and payable without further notice.
No termination under this paragraph shall affect Bank's rights or Borrower's obligations regarding payment or default under this Agreement. Such termination shall not affect Borrower's obligation to pay all Loans, fees, and finance charges accrued through the date of final payment. Bank may also elect to honor Loan requests after termination of this Agreement, and Borrower agrees that any such payment by Bank shall constitute a Loan to Borrower under this Agreement payable upon demand along with accrued finance charges.
12. Joint Liability; Notices. If more than one person applies for the Advance Account, each such person shall be obligated under this Agreement and may exercise all rights hereunder, and all obligations of Borrower shall be joint and several obligations of all such persons. Bank may rely on instructions from any of such persons with respect to any matters relating to this Agreement or the Advance Account. All notices and statements to be furnished by Bank shall be sufficient if delivered to any such person, when deposited in the United States Mail, postage prepaid and all addressed to you at your last known address on our records. All notices to us by you shall be deemed given when received via the United States Mail service, postage prepaid, and addressed to New South Federal Savings Bank, 2000 Crestwood Boulevard, Birmingham, Alabama 35210.
13. Amendments. This Agreement may be amended by Bank upon giving written notice to Borrower not less than 30 days prior to the effective date of such amendment. Notice of any amendment will be sent by mail to your address as shown on our records. The amendment terms may, on and after the date upon which the amendment becomes affective, apply to all outstanding Loans, including any Loans arising from advances made prior to the effective date of the amendment. However, an amendment which would increase the rate of finance charge, other fees or impose a fee not set forth in this Agreement will be effective both as to any outstanding unpaid Loans and as to any future Loans only if, after receiving notice of such amendment, Borrower elects to use the Advance Account or agrees in writing to the amendment.
14. Severability;
Governing Law. If any provision
of this Agreement or of any writing used in connection with this Agreement
is unlawful or unenforceable, each such provision or writing will be without
force and effect without thereby affecting any other provision hereof. This Agreement will be governed by the substantive
laws of the United States and the laws of the State of Alabama, without
regard to Alabama's rules regarding conflict of laws and without regard
to your state of residence or the location of any Transfer or terminal.
15. Arbitration. All disputes, controversies or differences between the parties which arise under or are related to this Agreement (including, without limitation, the construction, performance, or breach of any agreement) upon which an amicable understanding cannot be reached within 30 days shall, upon the written request of either party, be settled and determined by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and judgment upon the award entered by the arbitrators may be entered in any court having jurisdiction of these matters.
The parties agree to arbitrate within thirty (30) days following the transmittal of written demand of either party to arbitrate any dispute arbitrable under this Agreement. Each of the parties shall appoint an arbitrator within thirty (30) days following notice of written demand to arbitrate, notifying the other party of the name and address of such arbitrator. The two arbitrators so appointed shall thereupon select the third arbitrator. If either party shall fail to appoint an arbitrator as herein provided, or should the two arbitrators fail to select the third arbitrator within thirty (30) days of this appointment, then, in either event, the president of the American Arbitration Association or its successor shall appoint such second and/or third arbitrator. The three arbitrators so selected shall constitute the court of the Arbitrators.
A decision of the majority of the court of arbitrators shall be provided within twenty (20) days of the applicable hearing and shall be final and binding. The court of arbitrators shall not be bound by legal rules of procedure and may receive evidence in such a way as to do justice between the parties. The court of arbitrators shall promptly enter an award which shall do justice between the parties and the award shall be supported by a written opinion. The cost of arbitration, including the fees of the arbitrators, but not including the attorneys' fees, shall be borne by the losing party unless said court of arbitrators shall decide otherwise. It is agreed that the provisions of this agreement relating to the arbitration of disputes hereunder shall be governed by the Federal Arbitration Act, 9 U.S.C.§1, et seq., and to the extent not in conflict with the Federal Arbitration Act, by the Commercial Arbitration Rules of the American Arbitration Association.
16. YOUR BILLING RIGHTS.
KEEP THIS NOTICE FOR FUTURE USE. This notice contains important information about your rights and responsibilities under the Fair Credit Billing Act.
Notify Us In Case of Errors or Questions About Your Bill.
If you think your billing statement is wrong, or if you need more information about a transaction on your billing statement, write us on a separate sheet at the address listed on your billing statement. Write to us as soon as possible. We must hear from you no later than 60 days after we sent you the first bill 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 name and account number; the dollar amount of the suspected error; and describe the error and explain, if you can why you believe there is an error. If you need more information, describe the item you are not sure about.
If you have authorized us to pay your bill automatically from your Checking Account, you can stop the payment of 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 billing statement was correct.
After we receive your letter, we cannot try to collect any amount you question, or report you delinquent. We can continue to bill you for the amount you question, including finance charges, and we can apply any unpaid amount against your Maximum 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 billing statement, you will not have to pay any finance charges related to the questioned amount. If we didn't 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 still refuse to pay, we must tell anyone that 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 don't follow these rules, we can't collect the first $50 of the questioned amount, even if your bill was correct.