MISSION FEDERAL CREDIT UNION AGREEMENTS AND DISCLOSURES
Loan Agreements
The terms and conditions of this Agreement and Disclosure shall apply to all loans, advances, and purchases made. In this Agreement, the words
“Credit Union” , “Branches,” “us,” “we,” “our,” or “MFCU” means Mission Federal Credit Union. The words “you,” “your,” and “signer” mean
each and all of those who sign the Loan Application. The term “Advance” shall mean any loan of money made under this Agreement. The term “loan
account” shall mean any loan approved under the Mission Federal Credit Union Loan Plan. For information regarding closed-end loans, please refer
to your loan contract. You understand that you may make several types of loans within the Loan Plan and each individual loan shall be considered a
separate loan.
PROMISE TO PAY - You promise to repay in U.S. dollars, all monies borrowed, plus the agreed finance charge, late charges, collection costs,
actual attorneys’ fees, and any other costs which become due under this Agreement. Payments will be delivered to MFCU on or before the scheduled
due date for each payment. You understand that you remain liable for the repayment of all debt incurred pursuant to your loan account even though
any agreement, divorce decree or other court judgment to which MFCU is not a party may direct you or some other party to repay the loan.
APPLICATION FOR CREDIT - Credit, if extended, will be extended on the basis of an application. All applicants agree to provide complete and
accurate information, to update the information as requested by MFCU, and to request no extensions hereunder without first supplementing the
application with any circumstances which would materially affect the borrower’s ability to reply. Upon receipt of an application for credit, MFCU
may investigate all applicants’ credit history; may establish the maximum credit limit or line of credit; and it may, at its discretion, grant future credit
or increase, decrease, or terminate any limit at any time. Notwithstanding your loan selection at the time your loan application is submitted, you
hereby apply for and agree to be bound to the terms of any other loan or Line of Credit as may be granted to you, now or in the future, by the MFCU.
ADVANCES - You may access your loan account via any means made available to you. You may not make any advance which will cause your
outstanding loan balance(s) to exceed your credit limit(s). If sufficient funds are not available to honor any loan checks you write, you understand a
return loan check fee will be assessed for each check. Refer to the current Fee Schedule.
CREDIT LIMITS - If your request for credit under the Loan Plan is approved, MFCU will notify you of the credit limit(s) approved for each loan.
PAYMENTS - You may pay all or part of any outstanding loan balance you have with us at any time without penalty. MFCU may apply any
payment to any loan type. Payments shall be applied first to any unpaid fees and/or late charges, then to the FINANCE CHARGE due, then to the
outstanding principal balance which may include any applicable insurance premiums and collection costs. We may accept late or partial payments,
even if marked “payment in full” without losing any of our rights under this Agreement.
A payment will be considered delinquent if not received on or before the payment due date. Cash/check deposits must be received in a branch on or
before the scheduled loan due date for each payment. Automated Teller Machine (ATM), MissionLine, MissionLink and Mission Kiosk loan
payment transfers must take place before the close of business on or before the scheduled due date. If a scheduled payment is due on a weekend or
holiday, the loan payment must made by the close of business on the preceding business day. Once the minimum payment amount is made, the loan
due date will advance to the next scheduled payment date. Statutory Lien Laws grant MFCU the right, under certain circumstances, to use funds in
your account to pay any debts or obligations you owe. MFCU may recover funds you owe from any of your accounts (excluding retirement
accounts). If you have an account(s) with other individuals, MFCU may use funds in the account(s) to pay the individual debts you or they owe.
MFCU may also use funds in an account(s) you own separately to pay debts owed to MFCU on the account(s) you own with other persons. If MFCU
uses funds from a certificate account(s), the funds withdrawn are subject to an early withdrawal penalty.
DEFERRED/SKIP PAYMENT OPTIONS - If you are approved for a “skip” option (deferring a payment so no payment is required during a
month), or if you are not required to make a payment during a designated billing cycle, you understand and agree finance charges continue to accrue.
Deferring a payment will extend the term of your loan and you will be required to make an extra payment(s) after your loan would otherwise be paid
off. Certain loan types may not be eligible for “skip” options. Other conditions may apply. A fee may be imposed for “skip” options.
SHARE AND CERTIFICATE SECURED LOANS - You may pledge funds as collateral in a savings account or eligible certificate to obtain a
secured loan. Not all certificates are eligible to be pledged as collateral. Refer to the certificate disclosure for eligibility information. The interest rate
for the share secured loan will be calculated by adding set basis points to the dividend rate. Refer to the current Loan Rate and Dividend Rate
Schedules.
VARIABLE RATE AND FIXED RATE OPTIONS - You understand many loans available within the Loan Plan may have a Variable Rate, which
means the ANNUAL PERCENTAGE RATE (and corresponding daily periodic rate) imposed on all variable rate loans will increase or decrease if
there is a similar increase or decrease in the index used or in the current savings rate. However, all Variable Rate loans will have a minimum rate
disclosed in the Advance Request Voucher and Security Disclosure or on the current Consumer Loan Rate schedule.
If a fixed rate is offered, the ANNUAL PERCENTAGE RATE (APR) available at the time the loan is established will remain in force until the loan
balance is paid in full or an additional advance is requested by you. If an additional advance is approved, a new loan will be established for the entire
balance of the loan including the new advance at the APR in effect at the time of the additional advance is approved. You understand that MFCU
reserves the right to charge a lesser APR than disclosed.
NOTICE OF CHANGES - You agree to notify us promptly each time there is a change in your name, address, employment, or any other condition
which may affect your ability to repay your obligation to MFCU.
CHANGE IN TERMS - You agree that MFCU may, subject to applicable law, modify any of the terms and conditions of this Agreement, including
but not limited to, the rate or method used to determine the finance charge, the minimum monthly payment, or the index used to determine changes in
the rate charged on variable rate loans. Notice of changes will be provided to you in accordance with applicable regulations. You agree the new terms
shall apply to your existing loan balance for any loan and to all future advances. You waive the right to receive notice if APRs are being reduced.
TERMINATION - MFCU may terminate this Agreement at any time with or without cause by giving you written notice. Termination will not
relieve you of the obligation to repay sums already borrowed from us and the repayment of those sums will remain subject to these terms.
STOP PAYMENT SERVICE - A stop payment may be requested on any UNPAID loan check. All stop payment requests must be authorized in
writing or via Mission Kiosk in order for the stop payment to remain valid for 12 months. Any stop payment request forms not signed by the account
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signer(s) will be valid for only 14 calendar days. A stop payment processing fee will be charged. There will be a processing fee for canceling a stop
payment request.
DEFAULT - You will be in default and we may, at our option, declare and accelerate all amounts owed by you to be immediately due and payable in
the event any of the following occur:
• You do not make any payment within 10 days of the payment date,
• In the event of your death,
• You become insolvent,
• You are the subject of bankruptcy proceedings,
• You have made any misrepresentation to us or have not fulfilled any promise made to us,
• We decide that our collateral is in jeopardy or used for unlawful purposes,
• You fail to promptly supply us with the exact physical address of the collateral or your current residence address,
• You fail to provide and pay all premiums on an adequate insurance policy.
You agree to pay us the entire balance due on all loans plus the accrued FINANCE CHARGE and any late charges owing. You agree to return the
collateral to us at a place of our choosing in a timely manner; and if you do not, we may, among other remedies as provided by law, repossess and
sell the collateral and apply the proceeds of the sale to your entire indebtedness. You agree to be liable for any outstanding balance remaining after
the sale of such property and application of the proceeds to your total indebtedness. You also agree to repay us for any costs we incur, including the
cost of taking, repairing, and selling the property, and actual attorneys’ fees and court costs, if any, whether or not litigation has commenced.
You also understand as a result of your failure to fulfill the terms of your credit obligations with us, a negative credit report may be submitted by us
to credit reporting agencies. This reporting may jeopardize your ability to establish accounts and/or credit with other institutions.
ADDITIONAL PROVISIONS - You agree that we may re-examine and re-evaluate your creditworthiness at any time. We have the right to make
no further advances until we have determined that the information is satisfactory. You agree that if any part of this Agreement is found invalid, it will
in no way affect the remainder of the Agreement. Your signing or endorsing any checks, drafts, or purchase slips issued under this Agreement or
your request for vehicle financing shall be further evidence of your acceptance of the terms and conditions of this Agreement.
You hereby consent to the release of loan payoff information on any loan you ever have under this plan.
Security Agreement
You understand applicable State law grants us a statutory lien on your share account(s); therefore, as security for any advances you receive under this
Agreement, you pledge to us all shares and dividends on shares now or hereafter held by you at MFCU, including term certificates, excluding
retirement shares.
To protect MFCU, if you default on any loan, you grant us a security interest under the Uniform Commercial Code as adopted by the State of
California or the state in which we have filed a lien on the property (collateral) described in the Advance Request Voucher and Security Disclosure
which you will receive with each secured advance to your loan account. You consent to the release of any information necessary for MFCU to secure
our interest on collateral pledged for your loan(s). You understand and agree all advances and purchases are made pursuant to this Agreement and
collateral securing any advance also secures all other present and future advances; however, we agree to release any collateral to you when all
advances secured specifically by collateral have been repaid.
You promise us you will be the rightful owner of any property which you offer us as collateral and that you will not permit anyone else to obtain a
security interest in it.
If you have a collateral secured loan(s) on an auto, boat, etc., you (a) agree to help protect MFCU’s interest in the collateral; (b) agree that the
security interest will be perfected/titled within the State of California unless otherwise approved; (c) will receive approval from MFCU prior to
removing the collateral for permanent relocation and/or registration in another state or country; (d) will not make any changes or alterations to the
collateral which may reduce its value without MFCU’s approval; and (e) will not use the collateral in a reckless or unlawful manner.
Protection of Collateral - You will maintain insurance on the collateral in a form and amount satisfactory to us. You will supply us with proof of
such insurance and name MFCU as the loss payee on any policy. You authorize us to contact your insurance provider to verify coverage on
collateral and/or to secure our interest as lien holder. If for any reason the insurance protecting any collateral which you have given us as security for
a loan is canceled or lapses, you agree we have the right to any refund from the insurance company. If you fail to maintain the required insurance, we
may, but are not obligated to, obtain such insurance in an amount satisfactory to protect our interest, and we may add the cost of this coverage to your
outstanding loan balance. We may, but are not required to, increase your monthly payment to cover the additional cost. This cost shall bear interest at
the same rate of finance charge as the loan secured by that collateral. You understand any insurance coverage we add will only be to protect our
interest in the collateral and will not satisfy any of the financial responsibility provisions of the California Vehicle Code. You understand your failure
to provide and pay all premiums on an adequate insurance policy shall be a default under the terms of this security agreement.
You agree you are responsible for the repayment of all sums owing under this Agreement and any other agreement you have with us and it remains
your obligation to repay all sums owing after the sale of any collateral in accordance with the laws of the State of California.
We may delay enforcing any rights we have under this Agreement without losing them. We may enforce this Agreement against your heirs, assignees
and legal representatives. If, in the future, we agree to modify the terms of your Loan Account, this Security Agreement will remain in force.
Truth In Lending Disclosures
FINANCE CHARGE - A Finance Charge (interest) is determined for each day there is an unpaid principal balance on your loan account. There is
no grace period on Finance Charges. The Finance Charge is determined for each day by multiplying the unpaid principal balance for that day by the
daily periodic rate. The unpaid principal balance for each day is the balance of your loan account at the close of business after all transactions,
including payment and new advances, have been posted.
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DAILY PERIODIC RATE - The Periodic Rate is determined by dividing the Annual Percentage Rate (APR) by 365 (days). The APR and Daily
Periodic Rate will vary for all Variable Rate Loans.
VARIABLE RATES - If the loan granted is a Variable Rate Loan, the Finance Charge will be computed using a variable interest rate which will
change from time to time as described as follows:
Effective Date for Rate Changes - The APR may change as often as the first of each month or the 18th of every month for Visa loans. Adjustments
to the APR will be made in accordance with changes in the index, as described below.
The Index - The index for share secured loans is the current savings dividend rate found in the dividend rate schedule (plus 3%). The index for all
other consumer loans is the lowest Prime Rate in effect on the fifteenth day of the preceding month as disclosed in the western edition of the Wall
Street Journal. If anytime thereafter, due to factors beyond the control of MFCU, either this index becomes impractical to use or ceases to exist, we
reserve the right to substitute a like or similar index.
Annual Percentage Rate Calculation - The APR for new share secured loans will be determined by adding 3% to the current savings dividend rate.
The new APR for all other consumer loans will be determined by adding the margin to the lowest Prime Rate in effect on the fifteenth day of the
preceding month as disclosed in the western edition of the Wall Street Journal.
Limitation on Adjustment to the Annual Percentage Rate - The rate shall never be greater than the maximum legal rate which may be charged by
MFCU. The minimum APR is the rate in effect at the time of the initial loan advance or as disclosed.
EFFECT OF INTEREST RATE INCREASE OR DECREASE - The effect of an increase or decrease in the APR will be to increase or decrease
the number of payments required to pay the balance in full or increase or decrease the minimum payment amount.
RISK BASED PRICING - The interest rate will be based on your credit history, the information provided on your loan application and your
relationship with MFCU. Please refer to the Consumer Loan Rate schedule for current rates.
LATE CHARGES - You agree the tender of your payment past its due date (i.e., a late payment) to us will cause MFCU to incur costs and losses
which include but are not limited to delay in its anticipated cash flow, lost opportunity, and actual collection costs and processing expenses, all of
which shall be avoided if timely payment is made by you. You acknowledge the amount of the damages and costs which shall be sustained by MFCU
as a result of the tender of your late payment are impracticable or extremely difficult to fix and proof of actual damages and costs sustained would be
costly or inconvenient for MFCU to establish. Therefore, you agree if the required payment is not made on or before the 7th (seventh) calendar day
following the payment due date, a late charge will begin to accrue. As a late charge, you shall pay to us an additional sum equal to 20% of the interest
then due (minimum $1.00). You agree this late charge represents a reasonable sum and estimate of the damages and costs MFCU will incur as a
result of your late payment. The acceptance of the late charge by us will not prevent us from exercising any of the other rights and remedies provided
to us by this agreement or by the laws of the State of California.
THIRD PARTY FEES AND CHARGES - The following fees and charges will be the actual amount charged by the appropriate public official or
department and will be shown on the Advance Request Voucher and Security Disclosure: (a) fees and charges prescribed by law which actually are
or will be paid to public officials for determining the existence of or for perfecting or releasing or satisfying any security related to this plan; (b) taxes
not included in principal; and (c) license, certificate of title, and registration fees imposed by law.
Credit Life and/or Disability Insurance
YOU UNDERSTAND CREDIT INSURANCE IS NOT REQUIRED AS A CONDITION FOR OBTAINING CREDIT. YOU MAY OBTAIN THIS
COVERAGE FROM ANY INSURER OF YOUR CHOICE.
Credit Life and Credit Disability Insurance is available on qualified individual and joint loans. To apply for coverage you must complete a Credit
Insurance Application.
If you are approved for credit insurance on any loan, you understand all premiums for requested insurance will be computed monthly based on the
outstanding balance due on each loan at the end of each month and will be added to your loan balance. This may cause your loan to take longer to
repay. The provisions of your credit insurance coverage are contained in the Certificate of Insurance which you will receive upon insurance approval.
Insurance coverage is not available for single payment or mobile home loans. Insurance is not available for loan guarantors.
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