Common use of Monetary Compensation Clause in Contracts

Monetary Compensation. 19. Compass Bank shall establish an escrow fund totaling $1.75 million (“the Settlement Fund”) for the purpose of paying damages to persons who may have suffered as a result of Compass Bank’s alleged failure to comply with the Equal Credit Opportunity Act (“Payee Co-Applicants”). The Settlement Fund constitutes a reasonable sum to compensate non-spousal co-applicants whom the United States alleges to have been aggrieved by the discriminatory conduct described above. Compass Bank shall provide written verification of the deposit to the United States within seven (7) days of the effective date of this Agreement. Any interest that accrues shall become part of the Settlement Fund. 20. Payments to Payee Co-Applicants shall be made pursuant to a detailed Methodology used by Compass Bank, which has been approved by the United States. Pursuant to this Methodology, Compass Bank shall pay each pair of Payee Co-Applicants (who Compass Bank has identified to the United States by loan number, name, region and loan category) from the Settlement Fund in the following manner: a. For loans originated in the East DFS Region, Compass Bank has identified a total of 1,488 policy loans to Payee Co-applicants (“East Category A”) and a total of 1,613 exception loans to Payee Co-applicants (“East Category B”). Compass Bank shall pay $325 to each pair of Payee Co-Applicants in the East Category A and b. For loans originated in the West DFS Region, Compass Bank has identified a total of 1,052 policy loans to Payee Co-applicants (“West Category A”) and a total of 2,374 exception loans to Payee Co-applicants (“West Category B”). Compass Bank shall pay $460 each pair of Payee Co-Applicants in the West Category A and $230 to each pair of Payee Co-Applicants in the West Category B. 21. Payments from the Settlement Fund to Payee Co-Applicants shall be subject to the following conditions: a. No Payee Co-Applicant shall be paid any amount from the Settlement Fund until after the execution of a written release of all claims, legal or equitable, which he or she might have against Compass Bank regarding claims asserted by the United States in this lawsuit, so long as such claims accrued prior to the entry of this Agreement. The form of the release is set forth in Appendix C (Release). If Compass Bank receives a Release from only one of the two co-applicants on a loan, Compass Bank shall pay half of the amount listed in Paragraph 20, to the co-applicant who returned the Release. b. The total amount to be paid by Compass Bank to the Payee Co-Applicants shall not exceed $1.75 million plus interest. 22. Within forty-five (45) days from the effective date of this Agreement, the Bank shall mail to each pair of Payee Co-Applicants information about the respective settlement award via a regular mail notification letter to their last known address as reflected in Compass Bank's records, or based upon information provided by the U.S.