The terms of this Agreement are contingent upon approval. If approved your Credit Limit will be $500. Please retain the Account Agreement and Disclosure for your records. It contains important information regarding your Ready Reserve Account.
This Agreement creates a Ready Reserve account (the “Account”) which you may use to obtain extensions of credit from time to time. The Federal Truth-in-Lending Disclosure and the terms and conditions governing the Account are set out below.
The words “we”, “us” and “our” mean Republic Bank & Trust Company. The words “you”, “yours”, “Borrowers” mean the Borrower(s) name in the Agreement, jointly and severally.
- BEGINNING THE ACCOUNT — The Account will begin on the following business day after this Agreement is received by the Borrower(s).
ADVANCES — The Account allows Borrowers to obtain loans from us, from time to time, within the Maximum Credit Limit shown on this Agreement, by presentation of checks or drafts against the Deposit Account identified on this Agreement in excess of its balance. Each Advance we make shall be treated as a loan under this Agreement in the amount of the Advance. The Account will also be charged any delinquency charges. Any and all such fees and charges will be treated as loans to you and are referred to herein together with any credit you obtain in the manner described on this Agreement as “Advances”. The amount of each Advance shall be charged to the account on the date we pay it or (in the case of fees and charges you owe us) on the date such is due.
Each Advance we make shall be treated as a loan under this Agreement in the amount of the Advance. The Account will also be charged any delinquency charges. Any and all such fees and charges will be treated as loans to you and are referred to herein together with any credit you obtain in the manner described on this Agreement as “Advances”. The amount of each Advance shall be charged to the account on the date we pay it or (in the case of fees and charges you owe us) on the date such is due.
FINANCE CHARGE — When you use the Account or have an outstanding balance on the Account, you will incur the obligation to pay a FINANCE CHARGE.
- The Finance Charge will begin to accrue on the date an Advance is charged to the account and will continue to accrue until the entire outstanding balance of the Account has been paid in full.
- The FINANCE CHARGE you will pay will be computed by multiplying each “daily balance” on the Account during the “Billing Cycle” by the “Periodic Rate” (as such terms are defined or described below). To get each “daily balance” we take the beginning balance of your Account each day, add any new Advances and charges and subtract any payment or credits.
- All activity on the Account including all Advances and credits shall be grouped and accounted for in consecutive monthly periods; each such period is referred to in this Agreement as the Billing Cycle. You will receive a periodic statement from us shortly after each Billing Cycle. This may be a separate statement just for your Account or may be combined, at our option, with the statement you receive for the Deposit Account. The periodic statement will summarize the activity in your Account during the Billing cycle, show you the finance charge YOU OWE FOR THE Billing Cycle and will show you the Principal Balance you owe on your Account as of the last day of the Billing Cycle.
- The Periodic rate used to calculate the FINANCE CHARGE payable for each Billing Cycle shall be the daily Periodic Rate. The Periodic Rate shall be one-three-hundred-sixty-fifth (1/365) of the ANNUAL PERCENTAGE RATE and each daily balance during the Billing Cycle shall be multiplied by the Periodic Rate to determine the FINANCE CHARGE for the applicable Billing Cycle.
- The ANNUAL PERCENTAGE RATE applicable to the account shall be 3.25% with a corresponding Daily Periodic Rate of 1/365 of the Annual Percentage Rate. The Annual Percentage Rate is a variable rate and shall be based on the highest Prime Rate listed in the money rate section of the Wall Street Journal on the first business day of each month not to exceed 21%. Any change in the rate will go into effect on the first day of your new billing cycle that includes the first day of the month following publication of the prime rate and may result in an increase or decrease in the Finance Charge imposed on your account. A change in the interest rate may also result in an increase or decrease in your minimum payment.
- MINIMUM PERIODIC PAYMENTS, —
- During the term of this Agreement you must make minimum periodic payments in the amount of 5% of the average Principal Balance for the Billing Cycle plus accrued FINANCE CHARGE.
- If the Minimum Payment is less than $25, then you will be required to pay the lesser of :I) $25 or II) the entire Principal Balance and FINANCE CHARGE.
- THE BALANCE OF THE ACCOUNT MAY BE PAID AT ANY TIME, IN FULL, OR IN PART.
- The minimum payment is automatically deducted from your checking account after each checking account statement date. Payment amount and date is indicated on account statement.
- DUE DATE — Each Minimum Periodic Payment is due on or before the date specified in the periodic statement of your Account you will receive after each Billing Cycle.
- ANNUAL FEE — There is no Annual Fee.
- SECURITY INTEREST — Collateral securing other loans with us shall also secure this loan with the exception of any property used or expected to be used by Borrower as a dwelling.
- This Revolving Line of Credit Account is made pursuant to KRS 286.3-710 et. Seq.
- CREDIT LIMIT — The unpaid balance of the Account may not go over the maximum Credit Limit which appears at the top of this Agreement. We have no obligation to pay, and may return without payment any check or draft drawn on your Deposit Account that would take the unpaid balance of the Account over the limit or if the unpaid balance the Account is already over the limit. If we decided to honor or pay any check or draft drawn on your Deposit Account after the unpaid balance is over the limit or which takes the unpaid balance over the limit, all of the terms and conditions of this Agreement will still be in effect.
- PROMISE TO PAY — All borrowers, jointly and severally (which means that each borrow shall be completely responsible to carry out his or her own Agreement and the Agreement of the other), promise to pay to us all amounts loaned under this Agreement other charges, if any, and any FINANCE CHARGE, collected costs and other amounts due on the Account. The borrowers shall be responsible for repayment of all Advances deposited into the Deposit Account, even if person authorized to sign checks on the Deposit Account are not signed on the Agreement.
- PERIODIC STATEMENTS — For each Billing Cycle we will mail a statement showing Advances, other charges, payments and credits made to the Account during the Billing Cycle. At our option, the statement may be combined with the statement you will receive for the Deposit Account. The statement will be considered accepted and correct unless we are notified in writing of any errors, within 60 days from the date of the statement.
- AGREEMENT MAY BE CANCELED — Any of the Borrowers may cancel this Agreement and the Account by sending us written notice and such cancellation shall be effective as to all Borrowers. Such notices shall become effective when it is received by us at our address shown on this Agreement. After any Borrower cancels, we shall have no obligation to make any further Advances, but we may do so at our option. If we do, all Borrowers remain obligated to pay the unpaid balance of the Account. After any Borrower cancels, the rights provided by this Agreement shall terminate immediately, and we can refuse to honor or pay any checks or drafts drawn on your Deposit Account in excess of the amount you have available in your Deposit Account. If this Agreement is cancelled by any of you, or us with 30 days prior written notice, the entire balance of the Account and all accrued fees and charges shall be immediately due and payable unless we agree, at our option, to some other repayment plan. This Agreement may be cancelled by us at any time in our sole discretion upon 30 days prior written notice, at which time the balance, if any, shall be immediately due and payable.
- ENTIRE BALANCE DUE (DEFAULT) — There will be a default under the terms of this Agreement if any one or more of the following occurs:
- any required minimum periodic payment is not made when due; or
- any Borrower fails to make any require payment on any other amounts owed to us; or
- a check or draft drawn on the Deposit Account is presented to us and at that time payment would take the balance of the Account over the Maximum Credit Limit, according to our records; or
- the terms and conditions of this Agreement or any other contract you have with us is breached; or
- a bankruptcy petition is filed by or against any of the Borrowers; or
- any of the Borrowers die; or
- an Order of Attachment, Garnishment or levy is served against any of the Borrowers or their property; or
- we in good faith believe that the prospect of any minimum periodic payment due on the Account or payment of the outstanding balance of the Account is impaired, or we deem ourselves insecure with respect to payment of any such amounts. If there is a default, we have no obligation to make any advances and we may refuse to do so without notice. If there is a default, then without notice or demand, we may but are not required to declare the entire balance on the Account due and payable immediately and may institute actions against all or any of the Borrowers. We may exercise our rights under this section immediately or we can postpone action to a later time without losing any of our rights. Even if we declare the entire unpaid balance due and payable immediately, the FINANCE CHARGE shall continue to accrue until the Account is paid in full.
- SECURITY INTEREST IN DEPOSIT ACCOUNT — In addition to any other security interest which we may have for payment of the Account, each Borrower does hereby deliver and grant to us an interest in all accounts, moneys and deposits now or hereafter in our possession or control and Borrowers each agree that we shall have a lien upon and security interest in such accounts, moneys and deposits to secure repayment of all amounts due under this Agreement.
- LEGAL ACTION — If collection action on the Account is taken, Borrowers agree to pay all court cost and reasonable attorney fees. Any judgment recovered on the Account will bear interest at the same ANNUAL PERCENTAGE RATE in effect as of the date a complaint is filed.
- FINANCIAL STATEMENTS — Since we may need updated financial information from time to time, Borrowers agree to furnish us a current financial statement upon request.
- WAIVER OF RIGHTS — Borrowers agree to waive some rights which they may otherwise have. It is agreed that we do not have to send notice of default, that we may from time to time release security without notifying or releasing any Borrower from responsibility under this Agreement, that we may refuse to take action against, or may release any of the extend or renew the time of payment(s) due under this Agreement.
- OTHER AGREEMENTS — The account shall not be secured, either directly or indirectly, by any property that is used or expected to be used by any Borrower as a dwelling. It is agreed that any statement or written notice required by law or this Agreement, may be mailed to “Borrower’s Address” shown on this Agreement unless we receive written instructions, signed by all Borrowers to change that address.
Notice to any one of the Borrowers shall be notice to all. It is also agreed that paragraph heading used in this Agreement are for ease of reference only and if found in conflict with the provision, shall have no force and effect. Further, if a court should declare any part of this Agreement invalid for any reason, the other terms and condition shall not be valid. Finally if there is a disagreement as to what law controls this Agreement, the law of the State of Kentucky will control.
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 Statement. If you think your statement is wrong, or if you need more information about a transaction on your statement, write us on a separate sheet at the address listed on your statement. Write 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. 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
- 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.
YOUR RIGHTS AND OUR RESPONSIBILITES 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 charge 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 relating to any 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 we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you write us within ten days telling us that you still refuse to pay, we must tell you the name of anyone we reported you to. We must tell anyone we reported 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 statement was correct.
By signing below, you certify that you have received and agree to the terms of this Agreement.
Signature: ________________________________________________ Date: _________
Signature: ________________________________________________ Date: __________