Overdraft Line of Credit Agreement

Overdraft Line of Credit Agreement
The following terms apply to your Overdraft Line of Credit (the “Account”) with Scottrade Bank (“Bank”). Please read these terms very
carefully and keep a copy of this Agreement for your records.
Credit Plan Terms & Conditions and Your Billing Rights
Interest Rate and Interest Charges
Annual Percentage Rate (APR)
for Cash Advances
Annual Fee
Paying Interest
We will begin charging interest on
each advance on the transaction date.
Penalty Fee - Late Payment
How We Will Calculate Your Balance
We use a method called "daily balance (including new transactions)." This Overdraft Line of Credit Agreement provides more details.
Billing Rights
Information about your rights to dispute transactions and how to exercise those rights is provided in this Overdraft Line of Credit Agreement.
In this Agreement, “you” and “your” mean the account holders and anyone else authorized to use the Account or the related bank
account or both. “We,” “our” and “us” refer to the Bank.
Agreement to Terms
By applying for this Line of Credit, or by using or consenting to the use of this Line of Credit, you agree to the terms and conditions in
this Agreement and that this Agreement will govern the Line of Credit and all credit extended under this Line of Credit. You understand
that the use of this Line of Credit will constitute your acceptance of, and will be subject to, this Agreement. You agree to be responsible
for all charges incurred according to this Agreement.
Joint Accounts
If there is more than one party to this Account, each of you agrees to be jointly and severally liable for all advances, finance charges
and fees associated with the Account. Each of you acknowledges that each of you is liable for all amounts owed under this Agreement
even if you did not receive any personal benefit.
Using Your Account
The Line of Credit is an unsecured line of credit that protects bank accounts (“related bank accounts”) that you choose. The only way to
access the Account is to overdraw related bank account(s). When an overdraft occurs we will extend credit to you under the terms and
conditions of this Agreement. Advances will occur whether the overdraft was intentional or not. Any checks, electronic debits or other
charges presented against your related bank account(s), including checks drawn by someone actually or apparently acting for you, will
trigger any advance under this Agreement. Without limiting the foregoing, if you deposit a check that is later returned to us without
payment for any reason, we may charge the amount of the check to your related bank account(s) and may cover any resulting overdraft
by transferring available funds from your Line of Credit as provided in this Agreement. We will make advances in increments equal to
the amount required to pay any item which creates an overdraft of your related bank account(s), up to the available balance remaining
on your credit limit. When the amount to be funded is greater than the available balance remaining in the Line of Credit the transfer will
not be allowed to occur. This may result in the covered account being overdrawn.
This Line of Credit is available only to persons who open and maintain a personal checking account with us. If you or we close your
checking account, we will automatically terminate your Line of Credit.
We are not obligated to honor any attempted usage of your Line of Credit if: (a) your Credit Limit has been exceeded or would be
exceeded by the transaction; (b) you have failed to pay amounts owed to us when due or have otherwise failed to comply with this
Agreement; (c) you have closed your checking account; or (d) your rights under this Agreement have been otherwise suspended,
revoked, or terminated.
If we receive conflicting demands or instructions from any of you, we may, in our sole discretion but are not obligated to, refuse to make
any advance that has not been requested by all of you together. In no event will we be liable for the delay or refusal to follow
instructions that occur because of an actual or apparent conflict. You agree to indemnify and hold us harmless for any claim or loss
relating to honoring or refusing to honor any instructions or demands that we believe may be conflicting. Our liability, if any, for wrongful
dishonor of a request for an advance is limited to your actual damages, and in no event will such liability exceed the amount of the
requested advance.
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Credit Limit
We will determine a maximum credit limit (“Credit Limit”) for your Line of Credit when we open it, and we may increase or decrease your
Credit Limit at any time, in our sole discretion. Your total advances outstanding at any one time may not exceed your Credit Limit, and
you agree not to attempt, request, or obtain an advance that would make your Line of Credit balance exceed your Credit Limit. We have
no obligation to make advances to you in amounts in excess of your Credit Limit; we may reject and return any item constituting a
request for an advance if allowing the advance would cause you to exceed your Credit Limit, or if you already have outstanding charges
in excess of your Credit Limit. However, in our sole discretion, we may make an advance even though the advance would cause you to
exceed your Credit Limit, or you already have a balance on your Line of Credit that exceeds your Credit Limit. If we do decide to allow
an advance in such cases, we will have no obligation to do so in the future. We will tell you your initial Credit Limit when we open your
Line of Credit, and we will notify you of any change to your Credit Limit by a remark on your billing statement or other written notice that
we send you.
The only way for you to repay any advance made against your Overdraft Line of Credit Account is by making a deposit into the related
bank account(s). Each time you make a deposit we will automatically transfer funds to satisfy any balance in your Overdraft Line of
Credit Account. By accepting the terms of your bank account(s) and this Agreement, you authorize us to electronically transfer funds
from your related bank account(s) to your Overdraft Line of Credit Account to repay all or part of your Account balance.
Promise to Pay; Payments Due
You promise to pay us all advances, finance charges and any fees associated with your Account. You may elect to pay the entire
amount, or a portion of the amount owing on your Account, for each billing cycle. The minimum payment will be ten percent (10%) of
the outstanding balance shown on your statement, plus any past due amount and any late charges. You must pay at least the minimum
payment within 15 days of your billing statement date. Should you not make the minimum payment within the 15 day period, a “Late
Fee” will be assessed. If your minimum payment is not made within 30 days of the billing statement date, your Account will
automatically be moved to an inactive status for purposes of funding future overdrafts.
How Your Interest Charges Are Calculated; Daily Balance Method (including current transactions)
We figure the interest charge on your account by applying the periodic rate to the “daily balance” of your account for each day in the
billing cycle. To get the “daily balance” we take the beginning balance of your account each day, add any new advances and fees, and
subtract any unpaid interest or other finance charges and any payments or credits. This gives us the daily balance.
Interest Rate
The annual percentage rate (“APR”) for the Line of Credit is a fixed rate. The APR for your Line of Credit was disclosed to you when
you opened the Line of Credit. We figure the interest charge on your account by applying the Daily Periodic Rate to the “daily balance”
of your account for each day in the billing cycle. See above for how the daily balance is calculated. The Daily Periodic Rate will be
1/365th (1/366th in a leap year) of the APR. The Daily Periodic Rate and corresponding APR are disclosed on the current rate sheet
and on each billing statement we will send you.
No Grace Period
We will begin charging interest on each advance on the transaction date. Interest will accrue on the transaction until it is paid in full.
There is no time period (grace period) during which you may repay advances without incurring an interest charge.
Security Interest
The Account will not be secured, notwithstanding any agreement you may have with us to the contrary. We may exercise the right to
set off amounts due and payable under this Agreement against any other amounts you have on deposit with us, or any of our affiliates,
subject to applicable law.
Address Change
You agree to give us advance notice of any change in your name, address, email, or phone number.
Jury Waiver
We and you hereby waive the right to any jury trial in any action, proceeding or counterclaim brought by either us or you
against the other.
Governing Law
You understand and agree that (a) this Agreement and your Line of Credit are governed by applicable federal laws and, to the extent
not preempted by federal law, the laws of the state of Missouri without regard to conflicts of law principles regarding laws of different
states, and (b) your Line of Credit was opened or will be continued after approval by us in the state of Missouri. If any provision of this
Agreement is in conflict with applicable law, that provision shall be considered modified to the extent necessary to comply with such law.
We may make adjustments to your Line of Credit from time to time that reflect corrections to your balance; for example, if advances or
credits are posted in the wrong amount, to the wrong account, or if posting is delayed or an item is returned unpaid.
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Billing Statements
We will send or provide to you a billing statement for each monthly billing cycle in which your Line of Credit has a debit or credit balance
of more than $1 on the final day of the billing cycle or if we imposed a finance charge during the billing cycle. This statement will show,
among other things, all new transactions since the prior billing statement, the billing statement closing date, the total amount you owe
us as of the billing statement closing date, the finance charges and annual percentage rate for the billing period covered by the billing
statement, payments and credits made to the Line of Credit during the billing cycle, the minimum payment due, and the payment due
date. The billing statement may not be on a calendar-month basis. We reserve the right to change the billing statement closing date.
Application of Payments
Each payment made by you to your Line of Credit will be applied first to Finance Charges, advances, and then to fees.
We may delay enforcing our rights under this Agreement without losing them. Any waiver by us shall not be deemed to be a waiver of
other rights or of the same right at another time. We can accept and apply any late or partial payments, or payments marked “payment
in full” or similar statement, or payments marked with a request to apply the payment in a particular manner to amounts you owe under
this Agreement, without liability on our part, and without losing any of our rights under this Agreement, including the right to require full
payment of all amounts owed under this Agreement.
Waiver of Presentment
You waive any legal requirements of presentment, demand, protest, notice of dishonor, or notice of protest under this Agreement.
We may amend the terms of this Agreement (including, without limitation, the amount of any charges described herein) from time to
time, without notification to you, unless notice is required by law. If notice is required by law, we will send to you notice with your
electronic statement. Any amendment of this Agreement may, on or after the date on which it becomes effective as to us, apply to all of
your then- outstanding unpaid indebtedness to us on your Line of Credit. We may also modify or terminate any feature of your Line of
Credit that is not described or referred to in this Agreement.
We may terminate or suspend your Account at any time, with or without cause, upon such notice as is then required by law. If your
Account is terminated or suspended under this provision, you will continue to be liable for all sums owed until the Account is paid in full.
If you are in default, we may terminate or suspend your Account and also may require immediate payment in full of the entire Account
balance. You will be in default, without notice to you, if any of the following occurs:
If you fail to make any payment required by this Agreement or fail to comply with the other terms of this Agreement or any other
agreement with us, or any person who has guaranteed your obligations under this Agreement (a “Guarantor”) fails to comply
with the terms of the guarantee;
Another creditor attempts to attach, levy on, garnish or seize funds in the Account or other property of yours;
We have evidence or a reasonable belief that you will be unable to repay your obligation to us or others;
We have evidence or a reasonable belief that an unauthorized use of the Account may have or has been made;
You or any Guarantor dies, becomes incompetent, insolvent or subject to a bankruptcy or receivership proceeding; or
Your Account is closed by you or by us for any reason.
Unauthorized Use
You agree to notify us if any unauthorized use of the Account has occurred or you believe may occur, whether as a result of loss or
theft of any of your checks or otherwise. You agree to notify us as soon as possible, but in no event later than the day of discovery of a
loss or theft. Notify us by phoning your local Scottrade brokerage branch office or via email. You agree to tell us what you know about
the loss or theft in writing and you agree to assist us in discovering the circumstances relating to any unauthorized use of the Account.
If any provision of this agreement is held to be invalid or unenforceable under any law, rule or regulation, that determination shall not
affect the validity or enforceability of any other provision of the agreement.
Any notices we give you shall be deemed given when sent by email to the email address on file.
Collection Costs
In the event of a default, you agree to pay all collection costs, including legal expenses, our costs and our attorneys' fees (including the
allocated costs of in-house counsel), legal expenses and court costs for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction), appeals and post judgment collection costs and services. Any collection costs we incur will be added
to your Account and will bear interest as part of the principal balance of the Account.
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Your Billing Rights: Keep This Document 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:
Scottrade Bank
P.O. Box 31759
St. Louis, MO 63131
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 statement, 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:
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.
Within 90 days of receiving your letter, we must either correct the error or explain to you why we believe the statement 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 statement 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 statement. 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 statement is correct.
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