In this Agreement, the words "you" and "your" mean each and every signer on this Cash Reserve Line of Credit Account (the "Account"). The words "we," "us," "our," and "the Bank" mean Eastern Bank, a Massachusetts bank.
This Agreement contains the terms and conditions that govern your Account. You agree that (a) we may obtain any credit, income, and employment information about you we deem appropriate in connection with any review, renewal, modification, or collection of the Account; (b) we may disclose to our affiliates and/or any third parties any information about your application and/or any credit extended to you that we consider appropriate; and (c) you will abide by the terms and conditions of this Agreement.
YOUR CREDIT LINE. The maximum amount that you can owe us from time to time on this Account is called your credit line. Your initial credit line will be assigned when your application is approved. We may increase or decrease your credit line at any time and for any reason and, if we change it, we will notify you in writing by regular mail sent to your address shown on our records. You promise never to request a loan that, if made by us, would cause the unpaid balance of your Account to exceed your credit line.
If you do request a loan that would exceed your credit line, we have no obligation to make it, nor are we obligated to pay any draft that is postdated or more than 6 months old. However, we may do so if we so choose. You agree to repay any amount in excess of your credit line immediately and without demand from us.
HOW YOU BORROW MONEY. We will loan you money in the following manner, provided (a) you are not then in default under this Agreement and (b) your Account has not been closed:
(1) Overdraft Advances — upon proper instructions to us to withdraw or transfer funds from a NOW Checking or Demand Deposit account linked to this Agreement and in which there are insufficient funds to make the withdrawal or transfer (whether such instructions are given by means of a negotiable order of withdrawal or check, at an Automated Teller Machine ("ATM"), or through any other electronic fund transfer service), we will advance funds to your deposit account so that there are sufficient funds to make the withdrawal or transfer. Overdraft Advances will be made at the end of each business day in the total amount by which the deposit account is overdrawn.
(2) Other — from time, we may authorize other methods of obtaining advances.
Limitations on the amount of transactions that you can make with your Eastern Bank Debit Card or Eastern Bank ATM Card or that can be made at a particular ATM or through any other electronic fund transfer service may limit the amount of revolving credit advances you can request under this Agreement.
YOUR PAYMENT PROMISE. You promise to pay us all amounts that you borrow under this Agreement plus the applicable finance charge and other charges as provided for in this Agreement.
STATEMENTS. Each month we will mail you a statement that will show (1) loans, payments, charges, and credits posted to your Account during the statement period, (2) what you owe us (your "New Balance"), and (3) the amount of your minimum payment and when it is due (the "due date").
MINIMUM PAYMENT. Each month you must pay us by the due date at least the ”Total Payment Due” shown on your statement. This will be (a) the sum of (1) 3% of the principal balance of your Account or $25.00, whichever is greater, plus (2) all and Other Charges posted to your Account; plus (3) the amount of any overdue minimum payment or (b) the entire New Balance if it is less than $25.00. You may, of course, pay more than the minimum payment to reduce future finance charge. We may apply your payment to accrued interest and other charges before principal, so making the minimum payment may not result in reducing your principal balance by 3%.
HOW TO MAKE PAYMENTS. If this Account is for consumer purposes, you may make payments by giving us proper instructions either by mail, in person at our offices, or by using our Eastern online banking. If this Account is for business purposes, the minimum payment will be deducted automatically on the due date from the deposit account you designated for that purpose on the application. You agree to keep sufficient available funds on deposit in that account to cover the payment. You may not request a cash advance to make the payment, regardless of whether the Account is for consumer or business purposes. We may accept late or partial payment, or checks marked "payment in full" or the like, without losing any of our rights under this Agreement. We may extend the time for any payment or delay enforcing our rights under this Agreement without losing them.
FINANCE CHARGE. We charge interest (finance charge) on each advance beginning on the date of the advance and continuing until the date payment is credited. We use an average daily balance (including new advances) to calculate the finance charge for the statement period. This means that, during each statement period, we compute each day's balance for your Account. This is done by starting with the previous day's balance (excluding finance charge and any fees or other charges assessed to your Account) and adding advances and subtracting the principal portion of any payments and credits posted to your Account that day. At the close of the statement period, the daily balances are totaled and divided by the number of days in the statement period to determine your average daily balance. To calculate your finance charge, we multiply your average daily balance by a daily periodic rate of .049315% (corresponding ANNUAL PERCENTAGE RATE 18%) times the number of days in the statement period. The product of these calculations is your finance charge for that period.
LATE CHARGE. If any required payment is more than 15 days overdue, you will be charged a late charge equal to 10% of the principal balance of your Account or $10, whichever is less.
OTHER CHARGES. (1) You will be charged our usual insufficient funds charge whenever we receive a request for an advance that we do not pay because it would cause your Account balance to exceed your credit line. (2) You will be charged a returned check charge of $10 if a payment check you remit on this Account is returned unpaid for any reason.
ENTIRE BALANCE. If you fail to make any payment when due under this Agreement or if you fail to meet any of your other obligations under this Agreement (including without limitation your promise not to exceed your credit line) or if any of you die, make an assignment for the benefit of creditors, or if bankruptcy proceedings are commenced by or against you, we can declare the entire balance of your Account due and payable at once without notice or demand. If your obligation to pay the entire balance is accelerated for any reason, our obligation to make additional loans to you under this Agreement ends. Your obligation to repay amounts you owe under this Agreement continues.
SET-OFF. In the event of default, we may, to the extent permitted by law, set-off all or any portion of the amount due under this Agreement against any balance, credits, deposits, accounts, or other property of yours that is in our possession. (This provision does not apply if this Account is for consumer purposes and we have issued you any card that can be used to access your Account directly.)
CREDIT UPDATES. We may verify the current status of your financial circumstances from time to time.
COLLECTION. If we incur expenses (including without limitation court costs and reasonable lawyers' fees) in attempting to collect any amount owed by you under this Agreement, you agree to pay us these expenses to the extent permitted by law.
AMENDMENT. We may at any time amend this Agreement by mailing a written notice of the change to you at least 15 days prior to the date on which the change is to become effective or such longer period as may be required by applicable law. Any such amendment will apply to debts then owing and thereafter incurred by you.
CLOSING YOUR ACCOUNT. We have the right to close your Account at any time effective upon our mailing you written notice of our decision to close it. In the event we close your Account, your obligation to repay amounts we have loaned you plus finance charge and other charges as provided under this Agreement as amended from time to time continues. Any one of you has a right to request that we not make any future loans by delivering to us such a written request at any time. You also have the right to close your Account entirely if it has a zero balance by delivering to us a written request.
WHAT LAW APPLIES. This Agreement is governed by the laws of Massachusetts. If the terms of this Agreement conflict with any existing or future law, they will be deemed modified to the extent necessary to comply with such law. The validity of the remaining terms will not be affected.
JOINT ACCOUNTS. If this is a joint Account, each of you is legally responsible for the total amount owed, regardless of who triggered advances or incurred fees. If the NOW Checking or Demand Deposit account for which this Account provides overdraft protection is held jointly with another person, this Account will also cover that person's overdrafts and you agree to repay any amount advanced to cover an overdraft triggered by that person.
YOUR BILLING RIGHTS
KEEP THIS NOTICE FOR FUTURE USE. This notice tells you about your rights and our responsibilities under the Fair Credit Billing Act.
What To Do If You Find A Mistake On Your Statement
If you think there is an error on your statement, write to us at:
Customer Service Center
P.O. Box 391
Lynn, MA 01903-0491
In your letter, give us the following information:
• Account information: Your name and Account number.
• Dollar amount: The dollar amount of the suspected error.
• Description of problem: If you think there is an error on your bill, describe what you believe is wrong and why you believe it
is a mistake.
You must contact us:
• Within 60 days after the error appeared on your statement.
• At least 3 business days before an automated payment is scheduled, if you want to stop payment on the amount you think is wrong.
You must notify us of any potential errors in writing. You may call us, but if you do we are not required to investigate any potential errors and you may have to pay the amount in question.
What Will Happen After We Receive Your Letter
When we receive your letter, we must do two things:
1. Within 30 days of receiving your letter, we must tell you that we received your letter. We will also tell you if we have
already corrected the error.
2. Within 90 days of receiving your letter, we must either correct the error or explain to you why we believe the bill is correct.
While we investigate whether or not there has been an error:
• We cannot try to collect the amount in question, or report you as delinquent on that amount.
• The charge in question may remain on your statement, and we may continue to charge you interest on that amount.
• While you do not have to pay the amount in question, you are responsible for the remainder of your balance.
• We can apply any unpaid amount against your credit limit.
After we finish our investigation, one of two things will happen:
• If we made a mistake: You will not have to pay the amount in question or any interest or other fees related to that amount.
• If we do not believe there was a mistake: You will have to pay the amount in question, along with applicable interest and fees.
We will send you a statement of the amount you owe and the date payment is due. We may then report you as delinquent if you
do not pay the amount we think you owe.
If you receive our explanation but still believe your bill is wrong, you must write to us within 10 days telling us that you still refuse to pay. If you do so, we cannot report you as delinquent without also reporting that you are questioning your bill. We must tell you the name of anyone to whom we reported you as delinquent, and we must let those organizations know when the matter has been settled between us.
If we do not follow all of the rules above, you do not have to pay the first $ 50 of the amount you question even if your bill is correct.