EECU Master Loan Disclosure

TRUTH IN LENDING DISCLOSURE AND OPEN-END LOAN AGREEMENT

Parts in bold face are truth in lending disclosures. Please read the entire agreement.

I have applied for an open-end loan account with Educational Employees Credit Union. I agree that the extension of a revolving account to me under this agreement will be subject to the following terms. If I have applied for a VISA^TM  card, that account will be subject to additional terms outlined in a separate disclosure and agreement that I will receive with my cards.

A. ACCOUNT

1. If my application is approved the Credit Union will establish a credit limit for me. The amount will be based upon many factors including the value of any security, my ability to pay and my creditworthiness.
2. My account will be an open-end or revolving loan. This means that I can borrow the full amount of the credit limit, repay the principal in full or part and borrow again up to my maximum as long as I continue to be creditworthy.
3. Each joint borrower may use any open-end credit to the extent of the credit limit and will be liable with any other joint borrower for the loan including subsequent increases in the credit limit. Each borrower is individually and jointly responsible for paying all amounts owed.
4. As a joint borrower, I remain liable to repay the account, even if another person has been directed to pay the account by court order such as a divorce decree.

B. LOAN ADVANCES

1. I can request loan advances in person, by telephone, by mail, by special loan check, by using Online Access PC banking service, using Personal Telephone Access (PTA), online loans, or at ATMs owned by the Credit Union.
2. If my request is by check, my negotiation of the check will be my acceptance of the loan advance.
3. Loan advances requested by Online Access, PTA or ATMs owned by the Credit Union use a unique Personal Identification Number issued by the Credit Union at my request. Telephone, Online Access, or PTA actuated loan requests can only result in transfers of funds to my account or the issuance of a Credit Union check payable to me and mailed to the address on file.
4. Deposit of the funds into my account, whether internal or by direct wire transfer, or on my written authorization your sending the check to someone else as requested by me, will complete the loan advance. I will be obligated to repay such advances to you under the terms of this agreement as if I had personally endorsed the loan advance check.
5. If I have an active ATM Card or Visa^TM Check Card issued by you, I can use it in OptionTeller ATMs, Co-Op ATMs, or network ATMs to borrow up to the daily cash limit permitted under my separate ATM or EFT Services Agreement. My use of the card and PIN will constitute my loan advance acceptance.
6. Overdraft Protection Advances. I may request an advance by transmitting to the Credit Union a completed check, or making an ATM cash withdrawal or Check Card purchase, at any time that there are insufficient funds in my checking account or regular share account, or by completing any other transaction that would result in a negative balance in any of my accounts. Any resulting overdraft, up to the unused unsecured limit of credit approved by the Credit Union, will be added to my loan balance under this agreement if and when the Credit Union pays the check. Overdraft protection advances will be made in $100 increments, unless my overdraft protection loan source does not have sufficient available credit. If my available credit is less than $100 but enough to cover my overdraft, an advance of the remaining available credit will be transferred to my checking account. Any check presented for payment which creates an overdraft to my account will be returned as non-sufficient funds unless Overdraft Protection has been approved.
7. My loan account may be accessed by me at any time up to the credit limit for the applicable sub-account so long as my creditworthiness and ability to repay the loan have not diminished.
8. The Credit Union has the right to refuse to give me a loan advance. If required by law, you will notify me in writing, at my address as shown on your records, of the reason for any such denial of credit. Among the reasons for refusing to advance me credit are my having already borrowed up to the credit limit for the applicable sub-account, an adverse change in my credit standing, or my no longer being a member in good standing with the Credit Union.

C. CREDIT LIMIT
My credit limit, as determined by the Credit Union, may be reviewed periodically by the Credit Union, and I may be requested to provide current information. My borrowing limit may be increased or decreased at that time, or it may be terminated as to future advances.

D. REPAYMENT TERMS

1. I promise to pay to the Credit Union at its office all sums advanced to me under this agreement at any time plus a finance charge determined by the Credit Union. The finance charge is the amount of money that I pay for the money I borrow. The cost is computed based upon an Annual Percentage Rate.
2. The unpaid principal balance on any day is arrived at by adding any loan advances and subtracting any payments of principal. The finance charge is accrued daily by multiplying the daily interest rate applicable to each loan sub-account, if any, by the adjusted unpaid principal balance of each sub-account. It continues to be charged from the day the funds are loaned to me until they are repaid to you.
3. Payments by me will be first applied to the reduction of any charges, then the finance charge and the remainder, if any, will be applied to the reduction of the principal loan balance. Payments, including the applicable portion of the principal, will be apportioned to sub-accounts in conformity with Credit Union policy, the appropriate amortization schedule, and the requirements of the law.
   • Payment checks, not accompanied by loan coupons or other specific designation of payment, will be applied to loan sub-accounts at the Credit Union's discretion.
4. This is a fixed rate loan. The Annual Percentage Rates and corresponding Daily Periodic Rates for any sub-account are shown in the "Open-End Loan Rate Sheet" which is incorporated by reference for the date shown. The current rate for my loan advance may be different. Interest rates change periodically and the actual rate of interest applicable to my loan will depend on a number of factors including, but not limited to, my credit history and loan payments by automatic payment. The rate applicable to my loan advance will be shown on my loan advance voucher or my statement. It will apply to the sub-account until it is paid off, or until I obtain another loan advance under this open end loan program.
   • My required payment will increase only when the principal unpaid balance increases due to a further loan advance, or, if due to delinquency, the loan payment is insufficient to pay off the loan over any maximum period required by the Credit Union.
   • On certain loan types, my interest rate will be reduced according to the terms shown in the "Open-End Loan Rate Sheet." My reduced rate may be discontinued without advance notice in the month in which I stop making payments by payroll deduction or automatic transfer.
   • If I qualify for and choose to participate in the Credit Union's Summer Skip program, I will not have to make my regular loan payments during the months of August and September. Regular payments will resume in October. Interest will continue to accrue on my outstanding balance during the months in which I skip my payments.
5. The Credit Union will send me periodic statements of my loan account which will advise me of the status of my loan.
6. I will make monthly payments on or before the date specified on the loan advance voucher, billing notice or periodic statement. 
7. Any loan to me, which for any reason is, together with my current unpaid loan balance, in excess of my authorized credit limit, must be reduced by me by a single lump sum payment to the authorized credit limit on written notification by the Credit Union.

E. OTHER CHARGES
I may voluntarily elect to purchase Credit Life Insurance or Credit Disability Insurance. My insurance can be cancelled by the Credit Union if I do not make my payments on time. The Credit Union will add the insurance premiums to the principal balance of the loan, increasing the number of loan payments or increasing the payment amount. Estimated Monthly Disability Insurance premium: approximately $1.80 per $1,000 of insurance. Estimated Monthly Life Insurance premium: Single $.45, Joint $.72 per $1,000 of insurance. The premium may vary with number of payments. Estimates are subject to change without notice if the Credit Union obtains a lower rate. Exact unit cost, if different, will be stated in the separate insurance document.

F. SECURITY INTERESTS

1. The Credit Union at its option will take a security interest in personal property purchased by me with the money that I borrow. It may also take a security interest in property I own at the time. The security interest gives the Credit Union the right to take possession of the security and sell it to pay off all or part of the balance of my loan if I default in any of the terms of my loan or the security agreement.
2. The terms of the security interest are spelled out in detail in the Open-End Security Agreement and are made a part of this agreement by reference to them. The specific security for any transaction will be described on the loan documents at the time of the loan advance. My Credit Union accounts are additional security for the repayment of all loan advances to me. A security interest under the lien laws in all of my Credit Union accounts is described in Section J of this agreement and the VISA^TM  Disclosure, if applicable.
3. The security interest of the Credit Union will begin immediately upon my acceptance of the loan proceeds.
4. In consideration for and as a condition of the Credit Union making open-end loan advances available to me via ATM or Visa^TM Check card, I consent to the Credit Union's taking funds in any of my Credit Union accounts, including IRA (unless prohibited by law or the applicable account agreement), to pay any delinquency on any of my open-end loan sub-accounts. The lien does not restrict my right to withdraw funds prior to the exercise of the Credit Union's right and is not a pledge by me of the account. Any exercise of the right by the Credit Union is not an election of remedies.

G. CHANGES IN TERMS

1. The interest rate applicable to any sub-account will change to the then current interest rate for the sub-account at the time of any new loan advance.
2. The Credit Union has the right to change the terms of the loan on proper written notice to me. I have the option of not borrowing any more money and paying off the loan account under the terms before the change. If I accept an advance after a change in terms it will apply to the entire loan balance of my open end loan account.

H. HONEST DEALING

I will promptly notify the Credit Union of any information that affects my creditworthiness or ability to pay off the loan including but not limited to a change in address or employment.

I will not apply for any loan advance if I have reason to believe that I will be unable to make the scheduled payments.

I. ADDITIONAL TERMS APPLICABLE TO CO-SIGNERS

As a co-signer I understand and agree that I am obligated to repay any amount borrowed under this agreement up to the credit limit established by the Credit Union for the borrower to the same extent as the borrower, whether or not I get any of the money borrowed or even obtain any benefit from the loan. I understand that if I had not agreed to be obligated to repay the amounts borrowed, the Credit Union would not approve the credit. The Credit Union can proceed against me if the payments are delinquent even before it seeks to recover from the borrower. The Credit Union will give me notice of any action it takes that may adversely affect me. Any extension of the loan or partial settlement with the borrower will not waive any of the Credit Union's rights against me. I can stop being obligated for future loan advances only by writing to the Credit Union to that effect. But I will still be jointly and individually liable with the borrower for the repayment of the existing loan according to the terms of this agreement. I acknowledge receipt of the separate co-signer's notice.

J. DEFAULT-OFFSET-ACCELERATION

1. If I fail to make the agreed payments fifteen (15) days after the payment is due, I authorize you to apply any amount in any of my accounts held by the Credit Union at any time to pay off, in full or part, my loan (unless prohibited by law). Unless my loan is specifically secured by my Credit Union accounts, the lien does not restrict my right to withdraw funds prior to the exercise of the Credit Union's right and is not a pledge by me of the account. Any exercise of the right by the Credit Union is not an election of remedies.
2. If I am in default in my loan payments, in breach of the terms of this agreement, not a member in good standing, die, file for bankruptcy relief, or the liquidation value of the security for any sub-account is less than the sub-account loan balance, the Credit Union may declare the entire unpaid balance of the loan due and payable immediately without notice.
   • Even if the Credit Union accepts late payment or partial payment, it is not waiving its right to accelerate the payment of the loan and declare this entire unpaid balance due. The regular interest required under the terms of this agreement will continue to accrue even after my default and acceleration of the obligation.

K. COLLECTION COSTS

If my payment is 15 or more days late, you will add to my loan balance one late fee per late payment, equal to the greater of $5.00 or 3% of the payment due. A $15 maximum late fee applies to credit cards and signature credit lines only. There is no maximum late fee on secured credit. I agree to pay all reasonable collection costs incurred by the Credit Union before suit is filed. If you sue me to collect on this loan, I agree to pay whatever attorney's fees and costs the court finds reasonable.

L. TERMINATION

The Credit Union may terminate this agreement at any time as to future loan advances for a sound business reason by sending me a written notice of the termination and the reasons for so doing. I also have the right to terminate this agreement as to future loan advances on written notice to you.

M. GENERAL TERMS

The terms of this agreement must be read together with the Security Agreement. When the singular is used the plural is implied if there is more than one signer. If any part of this agreement is found to be invalid the other parts shall remain in effect. It shall not be construed against either party. Any dispute or action arising out of this agreement shall be brought in a court having jurisdiction and venue in Fresno, California. California and applicable federal law shall govern this loan agreement.

OPEN-END LOAN SECURITY AGREEMENT
Important! Keep This Notice for Future Use

I agree that there will be no other claims on or interests in the property specifically described in the disclosure other than the security interest of the Credit Union. My personal finances are sound and I know of no reason why creditors should make any claims against me or why I should enter into bankruptcy at this time or in the future.

1. I will abide by the terms of my Open-End Loan Agreement.

2. I will advise the Credit Union of any change in my address or any substantial deterioration in my financial circumstances.

3. I will furnish the Credit Union with any other documents needed by the Credit Union, relative to this loan.

4. I agree to sign documents and take any steps necessary to ensure that EECU is shown as lien holder in the property.  Failure to take steps necessary to perfect security interests in property pledged as security for open-end plan advances will result in the interest rate being increased to the highest rate being charged at that time for signature plan advances.

5. I will not remove the property from the state except temporarily (30 day maximum) without notifying the Credit Union in advance and getting its consent in writing.

6. I will not sell the property or give additional security interest in the property without either getting the consent of the Credit Union, or paying off my loan in full.

7. I will protect the property from deterioration or damages, make all needed repairs, maintain adequate insurance coverage on the security ($1,000 deductible) naming the Credit Union as a loss payee and furnish the Credit Union with a copy of the policy and endorsement. If I fail to make any premium payments, the Credit Union is authorized to make the payment or to replace a cancelled policy and add the premium to the balance of my loan as a loan advance, or take possession of the property and sell it. I will also pay taxes due on the property.

7.1 You have the right to obtain insurance to cover the Credit Union's sole interest in the security, if you find it necessary, and to advance the premium from my loan.

8. The security for this loan secures any later loan advance to me as long as the Credit Union discloses the fact to me in writing at the time of the advance.

8.1 Any additions to the security are subject to the security interest. This includes the proceeds of any stock split, exchange, or stock dividend.

8.2 The Credit Union has a right to require me to provide additional security if, in your opinion, the value of the security is insufficient in relationship to the unpaid balance of my loan.

9. If the Credit Union has required a co-signer and the co-signer dies or becomes insolvent, I agree either to obtain another satisfactory co-signer, furnish such additional security as the Credit Union requires, or pay off the loan balance.

10. If I made any false statements to the Credit Union in order to obtain this loan, or if I do so in the future, or if I default in any of my obligations under this agreement or the loan agreement, the Credit Union may, in addition to its rights spelled out in the credit agreement, take possession of the security and, after giving proper notice of sale, sell the security in a commercially reasonable manner.

11. In the event of my default I agree to deliver the security to you at your request and to the place you specify. If I fail to deliver it to the Credit Union, you or your agent are authorized to enter the place where the property is kept and take possession of the property without notice to me and without obtaining a court order to do so. I waive any right to claim that in taking the property you interfered with any of my legal rights to any extent.

11.1 The Credit Union is appointed my attorney in fact to do anything which you decide is necessary to protect the security or to assert your rights under this agreement.

12. I understand that if the proceeds of the sale do not meet all of the Credit Union's expenses of retaining and selling the security, including necessary repairs, cost of notices, cost of taking possession, reasonable attorney's fees, and like expenses, as well as the total unpaid balance of the loan, earned finance charges, other charges, and unpaid costs, that I must pay the Credit Union the remaining deficiency balance on demand. If I do not pay it, the Credit Union can sue me to recover it and I must pay, in addition, reasonable attorney's fees and court cost.

12.1 If the security is sold by the Credit Union to pay off the balance of my loan and there is a surplus from the proceeds of the sale after the loan and all costs have been paid off, the Credit Union can use the remaining funds from the sale to pay down the balance of any unsecured or partially secured loan of mine that is in default.

Your Billing Rights

STATE AND LOCAL LAW

The following summary of your rights under federal law does not cover all rights you may have under State and local law. If, under State or local law, you have a longer period of time in which to send an inquiry to the Credit Union concerning your statement, reliance on any such longer time period may result in your losing important rights which could be preserved by acting more promptly under federal law. State or local provisions, if any, only become operative upon the expiration of the time period provided by Federal Regulation Z for submitting a proper written notification of an error.

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 STATEMENT

If you think your statement is wrong, or if you need more information about a transaction on your statement, write us at the address listed on your statement; Educational Employees Credit Union, P.O. Box 5242, Fresno, CA 93755-5242. Write to us as soon as possible. We must hear from you no later than 60 days after we send you the first statement on which the error or problem appeared. A statement is considered sent when it is first made available. For an electronic statement, that is as soon as it is posted. You can telephone us at (559) 437-7700 (Toll-Free Nationwide (800) 538-EECU), but doing so will not preserve your rights.

In your letter, give us the following information:

1. Your name and account number.
2. The dollar amount of the suspected error.
3. 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 loan payment automatically from your share account, you can stop the payment on any amount you think is wrong. To stop 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 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 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 statement 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 did not 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 we report you to 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 when it finally is.

If we do not follow these rules, we cannot collect the first $50 of the questioned amount, even if your statement was correct.