By submitting this Loan Payment Deferral Request and Agreement, you are agreeing to the terms and conditions stated herein. The terms “I,” “you” and “your” mean the Borrower and Co-Borrower(s), individually and collectively if applicable, identified above and the terms “we,” “us” or “credit union” mean Neighbors Credit Union. You understand that the terms of the original note for the loan identified above (“Note”) remain in effect until you have written approval from us to defer your loan payment(s).
Affect of Loan Payment Deferral. By signing this Loan Payment Deferral Request and Agreement, Neighbors Credit Union will advance your loan payments and, as a result, you will resume making regular payments as set forth herein. Any adjustments to the payment schedule of the original Note may cause the loan to amortize differently than originally contracted. This may also result in a longer term and increase the number of payments required to repay your loan amount in full than is stated on the original Note regarding the loan. Deferring your loan payment(s) will result in your having to pay a higher total finance charge than if you made your loan payments as originally scheduled. Deferring your loan payments will not stop interest from accruing on your loan balance in accordance with your agreements with us. Interest will continue to accrue during the deferral period.
Deferred Payments. You understand that any payments deferred are not forgiven and must ultimately be paid to Neighbors Federal Credit Union. No payment will be required on your loan for the deferral period, however, you are required to resume your regularly scheduled payments the following month. Late fees will be applied if you are late making your payment(s) after your deferral period. Members who make regularly scheduled bi-weekly or more frequent payments in a month must defer one full month’s worth of payments.
Default. If you default under any term(s) of the original Note, this loan modification and/or security instrument or any other agreements related to the original Note, the loan modification and/or security instrument, then the terms herein shall be rescinded and all terms of the original Note and security instruments shall govern upon default as though this loan modification had not been entered into.
Automatic Payments. You are responsible for suspending automatic payments you have initiated for the deferral period from another financial institution in which you are deferring a payment. Neighbors Credit Union will not reject an automatic payment received from another financial institution for your loan payment. For an ACH origination where Neighbors Credit Union is the originator, a request to stop a transfer must be received at least five (5) business days prior to the scheduled transfer date.
Guaranteed Asset Protection (GAP) Benefits. Deferring your loan payments may reduce a potential GAP claim. Contact your provider for details about how deferring your payments will affect your coverage.
Approval Required. Neighbors Credit Union reserves the right to deny any request to defer your loan payments.
