AUTOMATIC DEBIT AGREEMENT
PAYMENT SERVICES PROVIDED BY THIRD COAST BANK
5. LOAN PAYMENT PROGRAM: By enrolling in Program, Client has engaged Bank to provide payment services and Lipsky & Associates, Inc to
administer the Program. Bank is authorized to make all necessary transactions to facilitate the Program. IMPORTANT INFORMATION: To help the
government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record
information that identifies each customer. Bank may ask for Client name, address, date of birth, and any other information to identify Client. Bank
may also ask to see Client driver’s license or other identifying documents.
6. TERM: Program shall commence and continue the transfer of payments on the agreed drafting schedule from Account, according to paragraph
3, for such a period as needed to retire Client’s loan or until otherwise terminated in accordance with this Agreement. Client may transfer the
Program to a new loan at no cost.
7. FUND TRANSFER and PAYMENT GUARANTEE: Funds are transferred via the Federal Reserve Systems Automated Clearing House (ACH)
into an omnibus account at Bank held for the benefit of participants in Program. The account into which funds are transferred is protected by
insurance from the Federal Deposit Insurance Corporation (FDIC). Federal banking laws and Federal Reserve regulations govern all transactions.
Client funds are remitted to Lender once per month in either check form via the U.S. Mail, FedEx, or ACH deposit. Payments may be made within
your grace period. Client’s loan payment is guaranteed to by made on a timely basis with funds collected from Client. Client acknowledges
responsibility for maintaining adequate funds in the authorized Account for the amount to be debited. In the event a Client’s first draft is returned,
for any reason, BOTH drafts will be debited on the second draft date. If the event Client’s second draft is returned, for any reason, the first draft
minus any fees owed will be returned to Client in check form via U.S. Mail or ACH credit to Client’s Account and Client will be responsible for
making the loan payment to lender. Program will then resume on the next scheduled draft date unless notified of termination by Client as in
paragraph 9. If Client’s account is insufficient in funds when drafts for a loan payment occur, the Client will be responsible for making the payments
to the Lender. If for any reason, a late charge is incurred in the payment of Client’s loan and it is not the Client’s error, an attempt will be made by
all means available to have the late charge removed or in the event the charge cannot be removed, the charge will be paid and a letter of
explanation submitted to Client’s lender. Any unapplied balance due to Client at time of account suspension or termination will be returned at
Client’s request to Client’s Account by ACH deposit or check via U.S. Mail, after the deduction of any fees due, including returned item and
ACH/electronic transfer fees. Client authorizes an electronic fund transfer from the account, if the unapplied balance is insufficient to pay any fees
owed. If you have a complaint or believe there has been an error, FIRST CONTACT Customer Service at (800) 361-1205. If you still have an
unresolved complaint regarding the Program, you may direct complaints to: Michigan Department of Insurance and Financial Services (877)
999-6442 (toll-free)- http://www.michigan.gov/difs OR Consumer Financial Protection Bureau, (855) 411-2372 / (855) 729-2372 (TTY/TDD),
www.consumerfinance.gov.
8. PAYMENT HISTORY REVIEW/AUDIT: Client may request a review/audit of Client’s Program once a year for the purpose of detecting lender
miscalculations to loan prepayments being applied to principal. Client agrees to provide all information necessary to perform such review as
requested. Client accepts sole responsibility for the accuracy of information provided to perform such review/audit.
9. TERMINATION AND REINSTATEMENT: This Agreement may be terminated immediately, without refund of fees paid, in the event a debit
transfer from the Client’s Account cannot be made due to (a) insufficient funds; (b) closing of account; or (c) any other reason within Client’s control
which impairs or prevents the automatic transfer of funds as stated in this agreement. Client may request reinstatement by contacting Customer
Service (800) 361-1205. Client may terminate Agreement at any time with reasonable notice to Customer Service (800) 361-1205. Bank may
terminate this Agreement at any time upon reasonable notice to Client and delivery of any unapplied balance in accordance with section 7. If this
agreement is terminated by either party for any reason, all enrollment, transfer, and other fees paid by Client will be considered non-refundable
and fully earned.
10. GUARANTEE: Program shall not violate any provision of the Client’s underlying loan agreement. If Client’s use of Program is found by Lender
to be in violation of the agreement between Client and Lender within the first year of this agreement, Client will receive reimbursement within ten
days of receipt of the written demand and verification of the alleged violation.
11. ENROLLMENT FEE: Only affiliated, authorized representatives are permitted to enroll Client in Program and collect enrollment fees.
Enrollment fees, if made by cashier’s check or money order are to be made payable to Equity Plus. Client may be provided an authorization code,
upon request, for the payment of any fees paid by credit card. The credit card authorization code or receipt of this agreement assures Client’s
enrollment in the Program. Dishonored payments will suspend Client’s enrollment status until the enrollment fee payment can be rectified. Client
can elect to defer the Enrollment Fee as outlined in section 12.
12. DEFERRED PAYMENT: Client acknowledges that any selected enrollment fee deferred option must be paid in full before Program is canceled,
suspended, or terminated. Client authorizes Bank to initiate an electronic fund transfer(s) from the Account AND/OR deduct from any unapplied
funds due to Client any unpaid deferred balance along with any other fees due. If Client elects to defer the Enrollment Fee at the time of
enrollment, Client authorizes all additional amounts drafted (additional principal payments) to be applied to the balance of the Enrollment Fee until
paid in full.
13. ACCURACY OF COMPUTER PROPOSAL: Client acknowledges that all calculations made by the software platform are based on information
supplied by the Client and Client accepts sole responsibility for the accuracy of information provided to the authorized representative. Client
acknowledges any changes in interest rates, escrow payments, etc. of loan or to Program will have a significant bearing on the numbers illustrated
in the software platform proposal.
14. PRIVACY: Bank privacy notice may be found at https://www.thirdcoast.bank/privacy.
15. LITIGATION: This agreement is governed by applicable federal laws, the laws of the State of Texas, and other applicable rules, such as
payment processing system rules. If any term of this agreement is found to be invalid or unenforceable, then the balance of the agreement shall be
enforced without the invalid or enforceable term. In the event of a dispute over this agreement, Client agrees to prosecute any such litigation within
Harris County, Texas and waives the right to trial by jury. In the event of such litigation, the prevailing party shall be entitled to costs and
reasonable attorney’s fees.
16. AMENDMENTS: This Agreement may be amended by Bank at any time upon reasonable notice in writing or by any other method permitted by
law.
17. LIABILITY: Unless Bank has acted in bad faith, Bank will not be liable for special or consequential damages, including loss of profits or
opportunity, or for attorneys’ fees incurred by Client.
18. LEGAL ACTION: If legal action, such as a garnishment, levy, attachment, or other state or federal action (“Legal Action”) is brought against the
Bank, Bank will not contest on Client behalf and Legal Action and may comply with such Legal Action as Bank determines to be appropriate in the
circumstances, without liability to Client, even if funds Bank is required to pay leaves insufficient funds for a transfer Client has authorized.