Loan Agreement

Promise to Pay

You promise to pay to the Credit Union or its order, the Amount Financed plus the Finance Charge according to the Payment Schedule as each is set forth in the disclosure on the reverse side of this Agreement. Your Total of Payments includes interest computed and payable at the Annual Percentage Rate shown in the disclosure on the outstanding balance of the Amount Financed from the date of this Agreement until repayment in full. The amount of your final payment (as well as the total Finance Charge and the Total of Payments) will be somewhat more or less than the amounts disclosed if payments are not received precisely on scheduled due dates. If your loan is a variable rate loan, the interest rate is tied to the movements of the applicable index shown in the disclosure on the reverse side. As a result, either the amount of your periodic payments or the number of such payments are subject to change, and your final payment, Finance Charge, and Total of Payments will be different than disclosed. When received, your payment will be applied by the Credit Union to: collection costs, then to any late charges, the finance charge owing, and the unpaid principal balance. Unpaid interest will be paid by later payments and will not be added to your unpaid principal balance.
 

Variable Rate

If your loan is a variable rate loan as indicated by one of the boxes “ ” denoted variable rate on the reverse being checked, you understand that your initial APR may increase or decrease from time to time during the life of your loan based upon movements of the applicable index shown in the disclosure.
 

Default, Repossession and Other Remedies

You understand you will be in default: (1) if you fail to make any payment on time; (2) in the event of your death; (3) in the event of your insolvency or the filing of any requests for relief under the Bankruptcy Code by or against you; (4) if you are the subject of any legal process which seeks to attach your Credit Union account; (5) if you have given the Credit Union false or inaccurate information in obtaining a loan or any other Credit Union services; (6) if you do any act or fail to do any act which the Credit Union believes endangers the Collateral, if any, or your ability to repay what you owe, including, but not limited to, leaving your current employment; (7) if you break any promise you have made under this or any other agreement with the Credit Union. In the event of a default, you understand that the decision to take action is at the sole discretion of the Credit Union and that the failure to act on one default will not prevent the Credit Union from acting on any future or similar defaults. You further agree that the Credit Union does not have to provide you advance notice before taking action on any default. You will be in default if you fail to obtain or maintain the required property insurance, or if you fail to pay all taxes when due. This Agreement, the Uniform Commercial Code, and other applicable law, authorize the Credit Union to take various actions; and the Credit Union may rely on any or all of those sources. The Credit Union may also file suit to recover the Collateral and/or collect what you owe. If the Credit Union incurs any expenses in taking these actions, or in protecting its rights to the Collateral, you promise to reimburse it and pay for all reasonable attorneys’ fees, court costs and disbursements. If your loan or account is assigned to an outside agency for collection, you agree to pay all attorneys fees, court costs and a collection charge of 30%, which will be added to the outstanding balance of your loan or account, as applicable.
 

Acceleration

If you are in default, the Credit Union may call any amounts you owe immediately due and payable plus finance charges which shall continue to accrue until the entire balance owing is paid in full. You further understand that if the Credit Union reasonably believes its Collateral is threatened, or that your ability to repay what you owe is impaired, it may call any such amounts immediately due and payable including finance charges.
 

Late Charge

If you are more than 10 days late in making a payment, you will be assessed a late fee of $25.00 or 5% of your monthly payment, whichever is greater.
 

Extension Agreement Fee

If you request a payment deferral, a fee of $25 may be charged for each request. This amount may be added to your loan.
 

Co-Borrower Or Co-Signer

If you are signing this Agreement as co-borrower or co-signer, you waive your right to require the Credit Union to attempt collection of this loan from the principal Borrower first. You agree to be equally, jointly, and severally responsible with the principal Borrower for all advances and charges on this loan. You understand that the Credit Union may elect to collect on this loan from you first in the event of any default. You understand that all the terms of this Agreement apply to you as well as the principal Borrower and you waive any requirement that you be notified of changes in the terms of this Agreement.
 

Additional Provisions

Each provision of this Agreement shall be considered as part of the total agreement. You also agree that should any part of the Agreement be found invalid, it will in no way affect the remainder of the Agreement. The Credit Union's rights, powers and remedies under this Agreement shall be cumulative and in addition to all rights, powers and remedies provided by law. No failure or delay by the Credit Union in exercising any such rights, power or remedy shall be deemed a waiver thereof; any such waiver must be in writing signed by the Credit Union. You understand that the validity, construction and enforcement of this Agreement shall be governed by the laws of the State of Utah, and you agree that the courts of Salt Lake County, Utah, shall have exclusive jurisdiction over all disputes arising in connection with this Agreement.
 

Credit Insurance

The premiums for your credit life and/or disability insurance are based on your outstanding loan balance and paid as part of your periodic payments. If you are late in paying or fail to make any periodic payment, the Credit Union may, but shall not be required to, advance funds on your behalf to pay such premiums and may impose additional Finance Charges on the amount advanced. If you elected voluntary Credit Insurance, you understand that insurance rates are not guaranteed.
 

Other Terms

All of our rights shall inure to the benefit of our successors and assigns and all of your obligations shall bind your heirs, legal representatives, successors and assigns.
 

Treatment of Payments

Payments must be received at any branch by the close of business day to be credited to your loan on that same day. If any payments made by you are less than the total payment due, the Credit Union may allocate such payment as described herein. NOTICE: You agree and attest that your name and address shown herein are your legal name and the place of your residence, and such address is the proper address for all notice(s) required by this Agreement, and you further understand that any changes in this address must be submitted to us in writing to be effective.
 

Security Interest

By signing this document and receiving the benefits of your loan described on the reverse side, you are giving the Credit Union a security interest in the Collateral described on the reverse side, and in all present and future shares you have, or have an interest in, in any account in the Credit Union. Under the Federal Credit Union Act, we have a statutory lien on your shares and other deposits. This means we may place a lien on (freeze) your present and future shares, share certificates and dividends to the extent of that portion of your loan that is in default. You are also giving a security interest in all present and future checking accounts you have with the Credit Union. You authorize the Credit Union to take that money and apply it to what you owe if you are in default. The Credit Union may, but does not have to, allow you to withdraw a portion of your shares or monies without affecting its security interest. You are not giving a security interest in any shares or monies in any IRA, SEP, KEOGH, or any other account which, if pledged, would result in the loss of special tax treatment under the Internal Revenue Code. This security interest covers not only the Collateral, but all proceeds, substitutions or replacements, accessions, improvements, all proceeds from insurance and all refunds of unearned premiums. The security interest also includes any replacements for the Collateral. Any time this Agreement refers to Collateral, it means any or all of the property described on the reverse. You are giving this interest to secure repayment of your loan as well as any other amounts you now or in the future owe the Credit Union. The Collateral also secures your performance of all other obligations under your loan, this security agreement and any other agreement you have with the Credit Union. If the Collateral is ‘household goods’ as defined in the 16 C.F.R. §444.1, it only secures obligations for the purchase money for that Collateral or a refinancing or consolidation of such obligations. However, cross collateralization does not extend to any dwelling.
 

Security Agreement


Cross Collateralization

You hereby grant a security interest to the Credit Union in all assets and Collateral separately pledged to the Credit Union as Collateral for this, or any loan transaction. You further agree that any security interest granted to secure this loan shall also collateralize any other indebtedness that you may now have or may have in the future with the Credit Union. It is the intention of this grant to provide for cross-collateralization. To further secure the payment of this loan and all other indebtedness to the Credit Union now owed or hereafter owed by you, whether or not said indebtedness was intended to be secured or personal, you grant a security interest to the Credit Union in all assets of whatever nature and kind that are pledged hereby as Collateral for the within indebtedness. This provision is intended to create cross-collateralization.
 

Protection of Collateral

You promise that you will use the proceeds of the loan to buy the Collateral or that you own the Collateral and that no one else has any interest in it or claim against it. If you do not make your payments as required, or if any default occurs, the Credit Union can take the Collateral, without breach of the peace, and sell it to reduce your debt after giving you the proper notice, or it can take advantage of any other rights and remedies given to secured parties under the Uniform Commercial Code or other applicable law. You agree: (a) to maintain, protect and to preserve the Collateral; (b) not to use or permit anyone to use the Collateral in violation of this Agreement or any statute, regulation or ordinance or any policy of insurance covering the Collateral; (c) to pay promptly when due all taxes, charges, encumbrances or liens now or later imposed upon or affecting the Collateral; (d) to notify the Credit Union promptly of any change of your name or address on file; (e) to help the Credit Union do all that is necessary to protect the Credit Union's security interest in the Collateral, including giving the Credit Union all endorsements, assignments, financing statements, or other writings which are necessary to protect the Credit Union's security interest and its priority; (f) not to sell, encumber, lease, rent, otherwise dispose of, or give the Collateral to anyone else other than the Credit Union; (g) to promptly deliver to the Credit Union in the form received, all proceeds of the Collateral you receive; (h) at any reasonable time, upon the Credit Union's demand, to exhibit to the Credit Union and allow the Credit Union to inspect the Collateral. Borrower warrants that title to said Collateral shall be registered in the name only of such Borrower(s) signatory hereto. You promise to have our security interest shown on any certificate of title that may be issued. You give us authorization to file a financing statement to protect our security interest from the claims of others. The Credit Union may act on any direction or authorization of any undersigned Borrower.
 

Property Insurance and Taxes

You are required to fully insure the Collateral against loss and damage with a deductible of no more than $500. You may obtain this insurance through an insurance company of your choice, unless the Credit Union, for good cause, refuses to accept it. If you fail to obtain or maintain the insurance, the Credit Union may buy any type of insurance it feels is necessary to protect its interest in the Collateral. SUCH INSURANCE WILL NOT BE LIABILITY INSURANCE. This could result in less protection for you and at a higher cost. The Credit Union will add the premium for this insurance to the applicable loan account and charge you a Finance Charge at the applicable rate. You agree that the Credit Union may increase your payment by an amount sufficient to repay any charges added by the Credit Union for property insurance and taxes in accordance with the originally scheduled term or demand full and immediate payment of all unpaid amounts due the Credit Union. You promise to have any insurance policy payable to the Credit Union and, if asked, to deliver it to the Credit Union. The policies for such insurance must say that the Credit Union is to be paid if there is a loss. If the Collateral is lost or damaged, the Credit Union may, but shall not be required to, use the insurance proceeds to replace or repair it, or to repay any amounts you owe the Credit Union. You also promise to timely pay all taxes due on the Collateral. If you fail to do so, the Credit Union may, but does not have to, pay the taxes and add the amount to the unpaid principal balance of the loan and charge you a Finance Charge at the same rate as your loan. You authorize Credit Union to make any necessary changes to correct any errors in the description of your vehicle, the vehicle ownership, or other similar errors. The Credit Union may execute on your behalf, any documents necessary to complete such changes. You agree that the title to the vehicle, showing the Credit Union as lien holder, must be delivered to the Credit Union within 90 days. A fee of $100 may be added to the loan along with any other remedies available to the Credit Union. Additionally, if you fail to perfect the Credit Union’s lien on the title, the Credit Union reserves the right to increase the interest rate on the loan to our maximum rate for unsecured loans.
 

Default

You will be in default if you break any promise made under this Agreement or if you are in default on your loan.
 

Default Remedies

When you are in default and after expiration of any right you have under applicable state law to cure your default, we can require immediate payment of your entire outstanding balance. You agree that we have the right to take possession of the Collateral without judicial process, and you authorize a right of entry (other than to a dwelling) for repossession. We will not be responsible for any personal property not covered by this Agreement that you leave inside the Collateral or that is attached to the Collateral. We will try to return that personal property to you. After we take repossession of the Collateral, we can sell it and apply the money to what you owe us. We will deduct our expenses for taking possession of the Collateral and for any commercially reasonable preparation or processing, storage and attorney’s fees to the extent permitted under state law or awarded under the Bankruptcy Code. The rest of the sale money will be applied to what you owe. Each Borrower will have to pay any amount remaining unpaid after sale money has been applied to the unpaid balance which you owe. You will pay interest on that amount at the rate of 18% per year, until all amounts have been paid in full.
 

Release of Collateral

If the Credit Union releases Collateral for sale by you, proceeds will be applied to your loan. You understand that if a balance remains owing after sale proceeds are applied to your loan, you are obligated to continue making scheduled periodic payments in accordance with the Payment Schedule of your loan with the Credit Union.
 

Other Terms


If any part of this Agreement is determined by a court to be unenforceable, the rest will remain in effect. All of our rights shall inure to the benefit of our successors and assigns and all of your obligations shall bind your heirs, legal representatives, successors, or assigns. The Credit Union reserves the right to impose a charge for statements regarding an accounting of our security interests.
 

General

No waiver by the Credit Union of any default shall operate as a waiver of any other default or of the same default on a future occasion. If there is more than one Borrower, their obligations hereunder shall be joint and several. You agree that the validity, construction and enforcement of this Agreement shall be governed by the laws of the State of Utah, and you agree that the courts of Salt Lake County, Utah, shall have exclusive jurisdiction over all disputes arising in connection with this Agreement.
 

Notice

You agree and attest that your name and address shown herein are your legal name and the place of your residence, and such address is the proper address for all notice(s) required by this Agreement, and you further understand that any changes in this address must be submitted to us in writing to be effective.
 

Prepayment

If you pay the loan off early, you do not have to pay a penalty. See the additional terms for information about non-payment, default and any required repayment in full before the scheduled date.