Common use of Minimum Payment Requirements Clause in Contracts

Minimum Payment Requirements. You must make monthly payments both during the draw period and the repayment period. Interest accrues on your total balance owing from the date of each advance and there is no time period within which any credit extended may be repaid without incurring a finance charge. At the time of each credit advance a payoff period will be established based upon the following chart for the outstanding balance then owed at the time of the last advance: Range of Balances Payoff Period Up to $10,000.00 60 Monthly Payments $5,000.01 to $20,000.00 96 Monthly Payments $20,000.01 and Above 120 Monthly Payments The length of the repayment period will depend on the balance at the time of the last advance you obtain before the draw period ends. The payoff period will always be the shorter of the payoff period for your outstanding balance or the time remaining to the maturity date. Your payment will be set to repay the balance after the advance, at the current annual percentage rate, within the payoff period. Your payment will be rounded up to the nearest dollar. Upon each advance, we will calculate your payments as specified in this paragraph. The payment will remain the same unless you obtain another credit advance. Your payments may also change if the annual percentage rate increases. We will check your account each year and if the annual percentage rate increases, we will review the effect the increase has had on your plan. If the annual percentage rate has increased so much that your payment is not sufficient to repay the balance within the payoff period, we will adjust your payment to repay the balance within the payoff period. Your payment will include any amounts past due and any amount by which you have exceeded your credit limit, and all other charges. Your payment will never be less than a minimum payment established by the Credit Union of $25.00 or, if the balance owing is less than $25.00, the remaining balance owing. You may receive advances by using your Home Equity Line of Credit that will not be paid off during the Draw Period. After the draw period ends, you will no longer be able to obtain credit advances and must repay the outstanding balance (the "repayment period") in monthly payments calculated in the same manner as your payments during the Draw Period.