In this Agreement, the words “you” and “your” mean each and every signer on this 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 which 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 in our records. You promise never to request a loan which, if made by us, would cause the unpaid balance of your Account to exceed your credit line.
If you do request a loan which 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 subject 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 in the amount of the overdraft.
(2) Direct Access Advances – upon proper instructions to us to advance funds directly from your Cash Reserve Account (whether such instructions are given by means of one of the Special Loan Checks we may have given you, at an ATM or through any other electronic fund transfer service), we will advance you the amount requested. Requests for direct access advances must be in the amount of at least $50.00.
(3) Other – from time to 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 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 requested 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 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 minimum payment amount shown on your statement. This will be the sum of (1) 3% of your New Balance or $25.00, whichever is greater, or the entire New Balance if it is less than $25.00, plus (2) the amount of any overdue minimum payment. You may, of course, pay more than the minimum payment to reduce future finance charges.
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 HomeConnect® online banking and bill payment service. If you wish to pay your entire Account balance, please contact the Bank to obtain your final payoff amount. This will ensure your payment includes all accrued interest. 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. Finance charges accrue on each advance we make from the date of the advance until the date payment is credited. 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 charges, annual participation fees, and other charges other than previously billed amounts that were not paid in full by the minimum payment due date for the immediately preceding month) and adding advances and subtracting 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.
ANNUAL PARTICIPATION FEE. Unless your account is linked to an Eastern Select Account® or an Eastern Premier Account®, you will be charged an annual participation fee of $25 on each December 1, for the period ending on that date.
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) 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. (3) 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.)
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 shall 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 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 shall be deemed modified to the extent necessary to comply with such law. The validity of the remaining terms shall 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 contains important information about your rights and our responsibilities under the Fair Credit Billing Act.
Notify Us In Case of Errors 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 of paper at the address listed on your bill after the words “Send Inquiries To:”. Write to us as soon as possible. We must hear from you no later than 60 days after we sent you the first bill 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. If you have authorized us to pay your credit card bill automatically from your savings or checking account, you can stop the payment on any amount you think is wrong. To stop the 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 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 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 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 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 don’t follow these rules, we can’t collect the first $50 of the questioned amount, even if your bill was correct.
Special Rule of Credit Card Purchases
If you have a problem with the quality of property or services that you purchased with a credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the property or services. There are two limitations on this right: (a) You must have made the purchase in your home state or, if not within your home state, within 100 miles of your current mailing address; and (b) The purchase price must have been more than $50. These limitations do not apply if we own or operate the merchant, or if we mailed you the advertisement for the property or services.
For customers with hearing or speech impairments, call Eastern’s Text Telephone (TDD/TTY) service at 781-596-4408.