Loan Agreement
PROMISE TO PAY: You promise to pay Atlantic Financial Federal Credit Union (AFFCU) on its order, the amount financed plus the finance charge according to the payment schedule determined and presented to you at the time you settle your loan. Your payment amount will include interest computed and payable at the Annual Percentage Rate shown in the disclosure on the outstanding balance of the Amount Financed from the date the Finance Charge begins until repayment in full. Your final payment amount (as well as the total Finance Charge and the total of Payments) will be somewhat more or less than the amounts disclosed at settlement 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 Index shown in the disclosure presented to you at settlement. Therefore, either the periodic payment amount 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 in this order: collection costs and any late charges if applicable, the FINANCE CHARGE owing, and then to 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, you understand your initial interest rate may change (increase or decrease) during the life of your loan based upon movements of the Index shown in the settlement disclosure. If the index ceases to be made available by the publisher, or by any successor to the publisher, AFFCU will set the interest rate by using a comparable index.
DEFAULT AND REPOSSESSION: You will be in default if you break any promise made under this agreement. 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 AFFCU account; (5) if you have given AFFCU false or inaccurate information in obtaining a loan or any other AFFCU services; (6) if you do any act or fail to do any act which AFFCU 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 AFFCU. In the event of a default, you understand the decision to take action is the sole discretion of AFFCU and the failure to act on one default will not stop action on another. You further agree that AFFCU 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. If you are in default, AFFCU may require that you deliver the collateral to it at a time and place of its choosing. You agree that AFFCU can take possession of the collateral without judicial process and you authorize a right of entry for that purpose and said repossession may occur without giving you advance notice except when notice is expressly required by applicable law. This agreement, the Uniform Commercial Code, and other applicable law, authorize AFFCU to take various actions; and AFFCU may rely on any or all of those sources.
AFFCU may also file suit to recover the collateral and/or collect what you owe. If AFFCU incurs any expenses in taking these actions, or in protecting its rights to the collateral, you promise to reimburse it and pay all costs of collection permitted under law including 33 1/3% of existing balance as reasonable attorney's fees. The principal balance in default shall bear interest at the contract rate. If AFFCU repossesses the collateral, you promise to also pay for actual and reasonable out-of-pocket expenses incurred by AFFCU in connection with repossession or foreclosure, including costs of storing, reconditioning, and reselling the collateral. AFFCU is not responsible for any personal property left in the collateral, however, we will make a good faith effort to return your property. In the event of sale of collateral you shall be responsible for any deficiency and pay such deficiency on demand. Any disposition of the collateral will be in accordance with the standards of good faith and commercial reasonableness as well as the procedures set by the Uniform Commercial Code as well as the procedures set by the applicable state law.
ACCELERATION: If you are in default, AFFCU 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 agree to pay all costs of collection permitted under law including 33 1/3% of existing balance as reasonable attorney's fees. You further understand that if AFFCU 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 CHARGES: You may be charged late charges as indicated in your settlement disclosure.
CO-BORROWER OR CO-SIGNER: If you sign an agreement as co-borrower or co-signer, you waive your right to require AFFCU to attempt collection of this account from the principal borrower first. You agree to be equally and severally responsible with the principal borrower for all advances and charges on this account. You understand AFFCU may elect to collect on this account from you first in the event of any default. You understand 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 must be considered as part of the total agreement and cannot, in any way, be severed from it. However, you also agree that should any part of the agreement be found invalid, it will in no way affect the remainder of the agreement. AFFCU'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 AFFCU in exercising any such rights, power or remedy shall be deemed a waiver thereof; any such waiver must be in writing signed by AFFCU. You understand the validity, construction and enforcement of this agreement shall be governed by the laws of the State of Maryland.
CREDIT INSURANCE: If you elect voluntary credit insurance protection, you understand that coverage is only for the original amount financed as shown in the truth-in-lending disclosure.
OTHER RIGHTS: AFFCU may delay taking any action to protect its rights as many times as it wants and as long as it wants without losing them. If AFFCU changes any of the terms of this agreement or the loan, you agree the security interest will continue to protect AFFCU. Use of the term "you" and "your" includes any person who signs the agreement. By signing, any such person agrees to all the terms and conditions and promises to perform all the obligations, requirements and duties contained in the agreement.
TREATMENT OF PAYMENTS: Payments must be received at any branch by closing on a business day to be credited to your account as of that same day. If any payments made by you are less than the total payment due, AFFCU may allocate such payment at its sole discretion.
NOTICE OF ADDRESS: You agree the address listed herein is the proper address for all notice(s) required by your loan agreement and you further understand that any changes in this address must be submitted to AFFCU in writing to be effective.
SECURITY AGREEMENT
SECURITY INTEREST: By signing the agreement and receiving the benefits of your loan, you give AFFCU a security interest in the property described on the agreement and all present and future shares you have in any account in AFFCU in which you have an interest. AFFCU shall have the power in accordance with 12 U.S.C. Section 1757(11), to place a lien on (to freeze) your present and future shares, share certificates and dividends to the extent of that portion of your loan which is in default, and any charges due. You are also giving a security interest in all present and future checking accounts you have with AFFCU. You authorize AFFCU to take that money and apply it to what you owe if you are in default. AFFCU may, but does not have to, allow you to withdraw a portion of your shares or funds without affecting its security interest. You are not giving a security interest in any shares or funds 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 that property but all proceeds, substitutions or replacements, accessions, improvements, all proceeds from insurance and all refunds of unearned premiums. Any time this agreement refers to collateral, it means any or all of the property described on your agreement. You are giving this interest to secure repayment of your loan as well as any other amounts you now owe or will owe AFFCU. The collateral also secures your performance of all other obligations under your loan, this security agreement and any other agreement you have with AFFCU. If the collateral is household goods as defined in the Federal Trade Commission Fair Credit Practices Rule, it only secures obligations for the purchase money for that collateral or a refinancing or consolidation of such obligations.
WAIVER OF SECURITY INTEREST IN PRINCIPAL DWELLING: If you have given AFFCU a security interest in any real property or personal property (such as a mobile home, houseboat, yacht and the like) used or purchased with the loan proceeds for use as your principal dwelling, the security interest retained by or granted under this contract will not secure (apply to) any existing debts previously entered into for personal family or household purposes (as opposed to business, commercial or agricultural purposes) and (unless you expressly agree) to any future loans or credit you may receive from AFFCU for personal, family or household purposes.
PROTECTION OF COLLATERAL: You promise 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 other event described in the Default and Repossession paragraph occurs, AFFCU 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 any one 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 AFFCU promptly of any change of your name or address on file; (e) to help AFFCU do all that is necessary to protect AFFCU's security interest in the collateral, including giving AFFCU all endorsements, assignments, financing statements, or other writings which are necessary to protect AFFCU security interest and its priority; (f) not to sell, encumber, lease, rent, otherwise dispose of, or give the collateral to anyone else other than AFFCU; (g) to promptly deliver to AFFCU in the form received, all proceeds of the collateral you receive; (h) at any reasonable time, upon AFFCU's demand, to exhibit to AFFCU and allow AFFCU to inspect the collateral. Borrower warrants that title to said collateral shall be registered in the name only of such Borrower(s) signatory hereto and application for such title shall request that a notice of liens in favor of the secured party in the amount of the indebtedness shall be endorsed upon the certificate of title. Secured party 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. You may obtain this insurance through any insurance company of your choice, unless AFFCU, for good cause, refuses to accept it. If you fail to obtain or maintain the insurance, AFFCU may buy any type of insurance it feels is necessary to protect its interest in the collateral. This could result in less protection for you and at a higher cost. AFFCU 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 AFFCU may increase your payment by an amount sufficient to repay any charges added by AFFCU for property insurance and taxes in accordance with the originally scheduled term. You promise to have any insurance policy payable to AFFCU and, if asked, to deliver it to AFFCU. The policies for such insurance must say that AFFCU is to be paid if there is a loss. If the collateral is lost or damaged, AFFCU can use the insurance proceeds to replace or repair it, or to repay any amounts you owe AFFCU. You also promise to pay all taxes due on the collateral. If you fail to do so, AFFCU 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.
GENERAL: No waiver by Secured Party of any default shall operate as a waiver of any other default or of the same default on a future occasion. All rights of Secured Party hereunder shall inure to the benefit of its successors and assigns; and all obligations of Borrower shall bind his heirs, executors or administrators or his or its successors or assigns. If there are more than one Borrower, their obligations hereunder shall be joint and several. This agreement shall become effective when it is signed by Borrower. If there be more than one Borrower, the obligations hereunder shall be joint and several.
1991 ConmarSystems, Inc., Peachtree City, GA 30269-CFS 41229 Rev. 07/98
