BSB OVERDRAFT PROTECTION AGREEMENT
The BSB Overdraft Protection Account offers you financial flexibility.
For example, you might want a line of credit (maximum $5,000.00) for a weekend retreat or even car repairs.
Remember, with BSB Overdraft Protection you will not be charged until you use it.
When you've completed your application, simply seal the application and drop it in the nearest mailbox or return it to Belmont Savings Bank.
If you have any questions, call or stop by one of our offices. We'll be happy to give you the answers you need and help you complete your application.
BSB OVERDRAFT PROTECTION APPLICATION AND AGREEMENT
The BSB Overdraft Protection Account is a revolving line of credit to be used with your Belmont Savings Bank DDA account. Here is the agreement that covers it. You will be obligated by this agreement as soon as you borrow money by using your BSB Overdraft Protection Account. If this is a joint BSB Overdraft Account, each of you will be responsible to pay the entire balance.
LOANS
You can borrow money by simply writing a check or making a withdrawal by any other means authorized by us that exceeds the balance of your DDA account. If you borrow money by writing a check or making a withdrawal, your loan will be for the exact amount of the overdraft. Each time you borrow on your BSB Overdraft Protection Account, you will owe us the amount borrowed, including any amount over your credit line plus interest.
CREDIT LINE
You may borrow on your BSB Overdraft protection Account only up to your credit line. We may honor, at our sole discretion, any request for a BSB Overdraft Account loan or check that is more than your credit line. If we do so, you will pay us, on demand, an amount sufficient to reduce the balance to the limit of your credit line. You can apply for a change in your credit line any time. Upon request, you must update the information in your BSB overdraft Account application.
BSB OVERDRAFT PROTECTION ACCOUNT STATEMENTS
After the close of each monthly billing cycle, we will mail you a BSB Overdraft Protection Account statement which will show: (1) the statement date, (2) the previous balance, (3) the amount and dateof each payment or other debits and each payment or other credits to your account during the billing cycle, (4) the finance charge for the billing cycle, (5) the new loan balance, (6) the amount of avail-able credit, (7) the minimum payment (if any) for the billing cycle, (8) and the date by which you must pay us the minimum payment. This date will be 25 days after the statement date.
PAYMENTS
Although you may pay back more, you must pay us, each billing cycle, a monthly minimum payment. This monthly minimum payment will be 1/20th of the new balance plus any amounts past due, but at least $25.00. If the new balance is less than $25.00, the minimum payment will be the entire balance. The new balance will include the outstanding amounts that you have borrowed plus a finance charge. We will deduct automatically when due, the minimum payment from your DDA account if you have not made the payment by the payment due date. Payments to your account will not be accomplished by the making of deposits to your DDA account.
ADDITIONAL OR LARGER PAYMENTS
You may pay us back more than the minimum payment, or pay us before the minimum payment is due, or make payment to us more than once a month in order to reduce the balance, or pay it completely. If you do this, you will save money. Additional payments must be accompanied by specific written instructions to credit your BSB Overdraft Protection Account.
FINANCE CHARGE
You will pay a monthly finance charge on the outstanding amount that you have borrowed. The finance charge begins to accrue on the date that the loan transaction is posted to your BSB Overdraft Protection Account. This is the way that we will calculate it:
DEFAULT
You will be in default if you do not pay us the minimum payment when you are required to, if you try to or do borrow more than your credit line, if you do not keep your other promises in this agreement, if we find that you have made misleading statements in your BSB Overdraft Protection Account application, if your DDA account is closed because you have mishandled (or misused) such account, or if you do not live up to your obligations. If you are in default, we can refuse to pay your checks that are presented to us for payment and declare the entire balance payable immediately. At our option, we may require you to pay off your outstanding balance in equal monthly installments, the amount of which will he determined by us. If we fail to require you to pay this obligation in full immediately, we will not be deemed to have waived our rights to require you to do so at a later time. If we fail to treat any of the above acts by you as a default, we will not be deemed to have waived our right to treat any similar acts by you as a default.
LENDER'S RIGHT OF SET-OFF
The Lender has the right to set-off against any of the Borrower's overdue obligations and liabilities, to the extent of such obligations and liabilities, any deposit, deposit balance, credit or sum then due from Lender to the Borrower.
COLLECTION COST
To the extent permitted by law, you agree to pay the reasonable cost we incur to collect this note in the event of your default, including attorney's fees and court costs.
CANCELLATION
We can cancel or temporarily suspend your right to borrow money under this agreement at any time. If we should do so, you will pay us the balance under the terms of this agreement.
ERRORS OR INQUIRIES ABOUT YOUR BILL
YOUR BILLING RIGHTS - KEEP THIS NOTICE FOR FUTURE USE
This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act.
Notify Us in Case of Error or Questions About Your Bill
If you think your bill is wrong or if you need more information about a transaction on your bill write us on a separate sheet at:
Belmont Savings Bank
Consumer Lending Department
P.O. Box 146
Belmont MA 02478.
Write to us as soon as possible. We must hear from you no later than 60 days after receipt of the first bill on which the error or problem appeared. You can telephone us but doing so will not preserve your right. In your letter give us the following information:
We will pay your BSB Overdraft Protection Account bill automatically (if past payment date) from your DDA account, but you can stop 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 bill is 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 bill that are not in question.
If we find that we made a mistake on your bill, 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 bill. 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 between us when it finally is.
If we do not follow these rules, we cannot collect the first $50 of the questioned amount, even if your bill was correct.
AMENDMENT
We can change this agreement, including the finance charge and annual percentage rate, at any time. However, if we do, we will mail you written notice at least 30 days before the effective date of the changes (or any longer time period required by applicable law). This notice will be mailed to your last address appearing on our records. If you do not agree to the changes, you must notify us in writing within 15 days from the date of such notice, stop borrowing any more money and pay us the balance, either all at once or under the terms of the unchanged agreement. Otherwise, we will understand that you agree to the changes in this notice.
APPLICABLE LAW
Questions about the meaning of this agreement will be decided by Massachusetts law. If any clause of this agreement is in conflict with Massachusetts law, that clause will be considered by each of us to be modified to conform with Massachusetts law.
We hope that you find your BSB Overdraft Protection Account to be an easy, convenient way to borrow money when you need it.
If we can assist you with any special arrangements to make the use of or payments due under this agreement more convenient (for instance at vacation time), or if there is any other banking or financial service that we might be able to provide, please call us at (617) 484-6700. We would like to help.
I have read and understand this Disclosure.