Repeat Borrowers only need to supply items denoted with a Yellow R. These items are required on every Loan Application.
11289 Strang Line Rd Lenexa, KS 66215 • Phone: 913.956.7325 • Fax: 913.956.7326 • www.peakassetlending.com
Loan Application
Instructions & Checklist
Loan Application - R
- Required on ALL loans
- Form supplied by Peak
Vendor Deposit Payment Authorization - R
- Required on ALL loans
- Form supplied by Peak
- Special Instructions
o Applicant can complete the Vendor Deposit Payment Authorization and return, OR go to this link
http://www.peakassetlending.com/makeDeposit and submit deposit online
Borrowers Information Release Authorization Form
- Required on ALL loans
- Form supplied by Peak
Sales Contract - R
- Required on ALL loans (see Special Instructions)
- Borrower Supplied Form
- Special Instructions
o Purchase Loans: Please provide a copy of the Sales Contract.
o Refinance Loans: Please supply the HUD-1 / Closing Statement from your original purchase of
the Subject Property and documentation for any repairs/improvements made to Subject Property if
repairs/improvements were made
Vendor Contacts - R
- Required on ALL loans
- Form supplied by Peak
- Special Instructions
o Please complete the Loan Application – Vendor Contacts Form
Point of Contact for Scheduling Appraisal
Home Inspection
Title Company
Construction Scope of Work – SOW - R
- Required on Rehab or Resale loans Only
- Borrower Supplied Form. Peak can supply Template upon request.
- Special Instructions
o Scope of Work (SOW) may also be your Construction Bid or Estimate
o The SOW will be used to determine the Investment Basis of the Loan
o The SOW will be used for any construction draw activity
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Repeat Borrowers only need to supply items denoted with a Yellow R. These items are required on every Loan Application.
11289 Strang Line Rd Lenexa, KS 66215 • Phone: 913.956.7325 • Fax: 913.956.7326 • www.peakassetlending.com
Loan Application
Instructions & Checklist
Organizational Documents
- Required on ALL loans
- Borrower supplied Form
- Special Instructions
o If the Legal Owner Type is anything but a Single Person – Individual, or Married Person, additional
documentation is required. This required documentation varies by Entity Structure. Please see
Checklists below based upon Entity Structure
Limited Liability Company (LLC)
Articles of Organization
Operating Agreement
Certificate of Good standing
Corporation
Certificate of Organization
Corporate Resolution to Borrow
Certificate of Good standing
Individual Retirement Account (IRA or Self-Directed IRA)
Contact Information for Custodian/Administrator
Trust
Copy of Trust
o Multiple Entity Titling: Organizational Documents are REQUIRED for every entity associated
with the Legal execution of the Loan Documents. For example: if the Legal Owner is an LLC, and
the Manager of the LLC is a Trust. Then Organizational Documents would be required for both the
LLC and the Trust.
Tax Identification Number
- Required on ALL loans
- Borrower supplied Form
- Special Instructions
o Tax Identification Number must be presented on a Government or IRS issued document
Borrower Financial Statement
- Required on ALL loans
- Form supplied by Peak
- Special Instructions
o Borrower is different than Legal Owner: The Borrower Financial Statement is a Consolidated
Financial Statement. A Consolidated Financial Statement includes the Assets, Liabilities, Income,
and Expenses for the Borrower and the Legal Owner (if different they are different).
o Foreign Borrower: Provide consolidated information for foreign and domestic Assets, Liabilities,
Income and Expenses.
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Repeat Borrowers only need to supply items denoted with a Yellow R. These items are required on every Loan Application.
11289 Strang Line Rd Lenexa, KS 66215 • Phone: 913.956.7325 • Fax: 913.956.7326 • www.peakassetlending.com
Loan Application
Instructions & Checklist
Vendor Contacts - R
- Required on ALL loans
- Form supplied by Peak
- Special Instructions
o Please complete the Loan Application – Vendor Contacts Form
o Supply additional information as required
o Insurance Company
Evidence of Insurance – EOI - R
Required on ALL loans
Borrower supplied Form
Insurance Requirements vary by location/loan and can be provided upon request
o Lease and Property Management Information
Property Management Agreement- R
Required on 30 Year Mortgage loans when Applicable
Borrower supplied Form
Special Instructions
o Provide copy of Property Management Agreement when Applicable
Lease Agreement - R
Required on 30 Year Mortgage loans when Applicable
Borrower supplied Form
Special Instructions
o Provide a copy of the Current Lease Agreement when Applicable
Verification of Income
- Required on ALL loans
- Borrower supplied Form
- Special Instructions
o Verification of Income can come in multiple forms with the most common being a copy of paystub /
tax returns / employer issued document / bank statements
Tax Returns – 2 Years
- Required on Credit loans Only
- Borrower supplied Form
Proof of Funds
- Required on Purchase, Rehab, and Resale loans Only
- Borrower supplied Form
- Special Instructions
o Proof of Funds can come in multiple forms with the most common being Bank Statements and/or
Investment Statements
Borrower Payment Authorization - R
- Required on ALL loans
- Form supplied by Peak
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• 11289 Strang Line Rd Lenexa, KS 66215 • Phone: 913.956.7325 • Fax : 913.956.7326 • www.peakkc.com
Loan Application
Property Information and Purpose of Loan
Property Address: ______________________________________________________________________________________
City and State: ______________________________________________________________________________________
Property Type: ______________________________________________________________________________________
(Choose One: Single Family Residence, Townhome, Condominium, Multi-Unit)
Number of Units: ______________________________________________________________________________________
(Choose One: 1 - Single Family Residence, 2 - Duplex, 3 - Triplex, 4 - Fourplex)
Home Owners Association (HOA): Yes
No
Purpose of Loan: ______________________________________________________________________________________
(Choose One: Purchase, Refinance, Rehab to Perm, Rehab for Resale)
Borrower and Legal Owner
Name of Borrower:___________________________________________________________________________________
Note: The Borrower and the Name in which the Property are Titled (Legal Owner) may be different.
Borrower Marital Status: Single Person-Individual
Married Person
Email Address: ______________________________________________________________________________
Phone Number: ______________________________________________________________________________
Legal Owner / Titling Information (If Different from Borrower)
Property Owner / Titled: ___________________________________________________________________
Type: Limited Liability Company (LLC)
Individual Retirement Account (IRA or Self-Directed IRA)
Trust
Corporation
Other - _____________________________________________________________
Does the Legal Owner have a “Layered” Entity Structure?: Yes No
Definition: A “Layered” Entity Structure is any Ownership whereby the Authorized Signor for the
Ownership Entity is another Entity.
• 11289 Strang Line Rd Lenexa, KS 66215 • Phone: 913.956.7325 • Fax : 913.956.7326 • www.peakkc.com
Loan Application
Loan Document Signor (If Different from Borrower)
Will there be a Signor other than the Borrower for the Loan Documents?: Yes No
If Yes, Whom: ______________________________________________________________________________
Relation/Structure: Power of Attorney
Corporate Resolution (Corporations)
Written Consent of the Manager (LLC)
Point of Contact Information
Is Borrower Primary Point of Contact?: Yes Yes, but Include Point of Contact in Correspondence
No No, but include Borrower in Correspondence
Point of Contact: ______________________________________________________________________________
(if not Borrower)
Relation: ______________________________________________________________________________
Email Address: ______________________________________________________________________________
Phone Number: ______________________________________________________________________________
Acknowledgement and Signatures
Applicant acknowledges that information supplied in this form will be used to further process their application, but is not a commitment of a
loan. Further the Applicant acknowledges that the Loan, should it materialize from this Loan Request/Application, is strictly and solely for the
purposes of investment activity. Investment Purposes/Activity specifically exclude owner-occupied residence, primary residence, and partial
residence.
Vendor Costs: Applicant further acknowledges that during the Application process the Lender may at their sole discretion use 3rd Party
Vendors to support their approval process, specifically, Appraisal Reports and Home Inspection Reports. Should the Applicant withdraw or
terminate their Loan Request/Application, they will become responsible for the cost of these services, but also will have the rights to receive
these reports.
Vendor Deposit Payment: Based upon information within this Loan Application, Applicant may be asked to submit a Vendor Deposit.
Pre-Approval: Applicant acknowledges that a Pre-Approval has been provided to them, offered to them, or can be supplied to them prior to
executing this Application. Applicant acknowledges that all Pre-Approvals are based upon information supplied by the Applicant and are not a
commitment of a loan.
Terms of Lending: Applicant acknowledges that the terms of the loan for which Applicant is applying for have been provided to them, offered
to them, or can be supplied to them prior to executing this Application.
Applicant / Borrower’s Signature
X _______________________________________________
Date: ___________________________________________
Co-Borrower’s Signature
X _______________________________________________
Date: ___________________________________________
11289 Strang Line Rd Lenexa, KS 66215 • Phone: 352.600.0504 • Fax. 913-956-7326 • www.peakassetlending.com
Vendor Deposit
Payment Authorization
Property: ______________________________________________________________________________
Borrower: ______________________________________________________________________________
Vendor Deposit Explanation and Process
During the Application process the Lender may at their sole discretion use 3rd Party Vendors to support their approval process, specifically,
Appraisal Reports, Home Inspection Reports, and HOA Information. The Vendor Deposit is collected upon Application to cover these
potential expenses. Should the loan application never materialize into a loan FOR ANY REASON, the Vendor Deposit will be used to cover
any and all Vendor Expenses. Applicant acknowledges that the Vendor Deposit is only an estimate and they are responsible for all 3rd Party
Vendor costs accrued in association with their Application, even if such costs exceed the estimated Vendor Deposit. Invoices of expenses
can be provided to Applicant upon request.
At Closing this Deposit will be credited to the Applicant/Borrower on the Closing Statement.
Vendor Deposit Amount and Servicer
The Vendor Deposit will be collected and held by Peak Asset Management, LLC as a Servicer to the Lender.
The Vendor Deposit amount is $400.00 (four hundred US Dollars).
Credit Card Payment Authorization
I authorize Peak Asset Management, LLC to charge my credit card account indicated below. I have read and understand the terms and
conditions of this charge as stated within and in the Loan Application.
Cardholder Name: __________________________________________________________________________________________
Account Number: __________________________________________________________________________________________
Expiration Date: ___________________
CVV2 (3 digit number on back of Visa/MC, 4 digits on front of AMEX): ____________________________
Billing Address: __________________________________________________________________________________________
City, State, Zip __________________________________________________________________________________________
SIGNATURE DATE
I authorize the above named business to charge the credit card indicated in this authorization form according to the terms outlined above. This
payment authorization is for the goods/services described above, for the amount indicated above only. I certify that I am an authorized user of
this credit card and that I will not dispute the payment with my credit card company; so long as the transaction corresponds to the terms
indicated in this form.
11289 Strang Line Rd Lenexa, KS 66215 • Phone: 352.600.0504 • Fax. 913-956-7326 • www.peakassetlending.com
Vendor Deposit
Payment Authorization
Online
Go to the following link: http://www.peakassetlending.com/makeDeposit
Payments by Check
Send Check Payable to: Peak Asset Management, LLC
11289 Strang Line Road
Lenexa, KS 66215
Payments by Wire
WIRE INSTRUCTIONS FOR
PEAK ASSET MANAGEMENT, LLC (Vendor Deposit – Merchant Services Account)
11289 Strang Line Road
Lenexa, KS 66215 Phone (913) 956-7325
Fax (913) 956-7326
Receiving Bank: Bank of America
Local Branch Bank of America, KS8-552-01-01 175 N. Clairborne Road Olathe, KS 6606 Phone: (816) 979-8561
ABA Routing Number: 026009593 Name on Account: Peak Asset Management, LLC Account Number: 518006228967
http://www.peakassetlending.com/makeDeposit
PEAK ASSET MANAGEMENT, LLC
PEAK EQUITY GROUP, LLC
HIGH PEAKS FINANCIAL, LLC
HIGH PEAKS INVESTMENT FUND IV, LLC
(Referred below as “Peak”)
11289 STRANG LINE RD, LENEXA, KS 66215
PHONE: (913) 956-7325 - FAX: (913) 956-7326
INFORMATION RELEASE AUTHORIZATION
I/We have applied for a purchase option, mortgage, consumer or business loan. In applying for the loan, I/We completed a loan
application containing various information on the purpose of the loan, the amount and the source of the down payment, employment
and income information, and assets and liabilities. I/We certify that all the information is true and complete. I/We made no
misrepresentations in the loan application or other documents, nor did I/We omit any pertinent information. I/We understand that under
Federal law, it is a crime punishable by fine and/or imprisonment to knowingly make any false statements when applying for this loan.
I/we give my/our consent for information contained in the loan application and in other documents required in connection with the loan
to be verified or reverified, either before the loan is closed or as part of Peaks’ quality control program and/or ongoing loan review.
This verification or reverification maybe made by Peak. (Service Provider), its agents, successors and assigns either directly or through
a credit-reporting agency. Such information includes, but is not limited to, employment history; criminal background, income and
licensing; bank, money market and similar account balances and deposits; credit history; and copies of income tax returns and/or W-2
forms.
A photographic or carbon copy of the signature(s) of the undersigned may be deemed to be equivalent of the original and may be used
as a duplicate original.
BUSINESS ENTITY INDIVIDUALS
By signing below you acknowledge that we
will verify the creditworthiness of the
below named Business Entity.
_______________________________________
Business Entity Name
_______________________________________
Signature Date
_______________________________________
Name/Title
Business Tax ID Number __________________
By signing below, you authorize us to check your credit
account and employment history and/or have a credit
reporting agency prepare a credit report on you.
______________________________________________
Full Legal Name
Address
______________________________________________
Social Security Number Date of Birth
______________________________________________
Signature Date
______________________________________________
Full Legal Name
Address
_____________________________________________
Social Security Number Date of Birth
______________________________________________
Signature Date
• 11289 Strang Line Rd Lenexa, KS 66215 • Phone: 913.956.7325 • Fax : 913.956.7326 • www.peakassetlending.com
Loan Application
(Vendor Contacts)
Property: ___________________________________________________________________________________
Borrower: ___________________________________________________________________________________
Appraisal - Point of Contact for Access and Scheduling
The Appraisal will be ordered by the Lender. This Point of Contact Information will be provided to the Appraiser as part of the
order to schedule and determine access to the Property.
Point of Contact: ______________________________________________________________________________
Phone Number: ______________________________________________________________________________
Email Address: ______________________________________________________________________________
Home Inspection Information
A Home Inspection is an Application Requirement. Please Circle an Option below. If the Lender is to Order please provide
a Point of Contact Information below. If the Borrower is providing the Home Inspection, Borrower acknowledges that the Home
Inspection must meet Lender’s requirements. These requirements can be provided to Borrower upon request.
Options (Circle One): Borrower will Provide OR Lender to Order
Point of Contact: ______________________________________________________________________________
Phone Number: ______________________________________________________________________________
Email Address: ______________________________________________________________________________
Title Company Information
Company: ______________________________________________________________________________
Point of Contact: ______________________________________________________________________________
Mailing Address: ______________________________________________________________________________
Phone Number: ______________________________________________________________________________
Email Address: ______________________________________________________________________________
• 11289 Strang Line Rd Lenexa, KS 66215 • Phone: 913.956.7325 • Fax : 913.956.7326 • www.peakassetlending.com
Loan Application
(Vendor Contacts)
Insurance Company Information
Company: ______________________________________________________________________________
Point of Contact: ______________________________________________________________________________
Mailing Address: ______________________________________________________________________________
Phone Number: ______________________________________________________________________________
Email Address: ______________________________________________________________________________
Property Manager / Management / Lease Information
Is Property managed by 3rd Party Management? Yes No
If Yes, Complete below information. No, Owner Managed Property
or Resale Loan
.
Property Management Agreement
Property Management Contact Information
Company: ______________________________________________________________________________
Point of Contact: ______________________________________________________________________________
Mailing Address: ______________________________________________________________________________
Phone Number: ______________________________________________________________________________
Email Address: ______________________________________________________________________________
Current Lease Agreement
BORROWER FINANCIAL STATEMENT 4/9/2003 jmk
SUBMITTED TO: Peak Statement Date:
IMPORTANT: PLEASE CHECK THE APPROPRIATE BOX:
If you are applying for individual credit in your own name and are relying on your own income, or assets and not the income or assets of another person as the basis for repayment of the credit requested, or if this statement relates to your guaranty of the indebtedness of other person(s), firm(s), or corporation(s), complete only Section 1, 3 and 4.
If you are applying for joint credit with another person, complete all Sections, providing information in Section 2 about the joint applicant
If you are applying for individual credit but are relying on income from alimony, child support, or separate maintenance or on the income or assets of another person as a basis for repayment of the credit requested, complete all Sections. Provide information in Section 2 about the person whose alimony, support, or maintenance payments or income or assets you are relying on. Alimony, child support, or separate maintenance income, need not be revealed if you do not wish to have it considered as a basis for repaying this obligation.
Section 1 – 1st Party Individual Information (type or print) Section 2 – Other Party Information (type or print)
Name Name
Address Address
City State Zip City State Zip
Social Security # Social Security #
Date of Birth Date of Birth
Position or Occupation Position or Occupation
Business Name Business Name
Business Address Business Address
City State Zip City State Zip
Length of present address Length of present address
Length of employment Length of employment
Res. phone Bus. Phone Res. Phone Same Bus. phone
Have (either of) you or any firm in which you were a major owner ever declared bankruptcy, or settled any debts for less than the amounts owned? If yes, please provide details on separate sheet.
Yes No
Are (either of) you a defendant in any suit or legal action? Yes No Are (either of) you presently subject to any unsatisfied judgments to tax liens? Yes No When, if ever, have (either of) you been audited by IRS?
Section 3 – State of Financial Condition
Assets (Do not include assets of doubtful value)
In dollars (omit cents) (Individual)
(Joint)
If Joint,
with whom
Liabilities In dollars (omit cents) (Individual)
(Joint)
If Joint,
with whom
Cash, Checking & Savings, CD’s - see Schedule A
Notes payable to banks & others -see Schedule H
U.S. Gov’t & marketable securities- See Schedule B
Due to brokers
Non-marketable securities – See Schedule C
Amounts payable to others-secured
Securities held by broker in margin accounts Amounts payable to others-unsecured
Restricted, control or margin account stocks Accounts & bills due
Real estate owned – see Schedule D Unpaid Income tax
Accounts, loans & notes receivable Other unpaid taxes & interest
Automobiles – Real estate mortgages payable – See Schedules D & H
Vested interest in deferred compensation/ Profit-sharing plans – see Schedule F
Business ventures – see Schedule G
Other assets/personal property itemize- See Schedule G if applicable
Total Liabilities
Net Worth
Total Assets Total Liabilities and Net Worth
Section 4 – Annual Income For Year: ←insert date Annual Income Individual Joint Annual Expenditures Individual Joint Contingent Liabilities Estimated Amounts Individual Joint
Salary, bonuses & commissions (NET)
Mortgage/rental payments Do you have any… Yes No
Dividends & interest Real estate taxes & assessments
Contingent liabilities (as endorser, co-maker or guarantor?)
Real estate income Taxes-federal, state & local (On leases? On contracts?)
Other income (alimony, child support, or
separate maintenance income need not be revealed if you do not wish to have it considered as a basis for repaying this obligation.)
Insurance payments Involvement in pending legal actions?
Other contract payments (car payments, charge cards, etc.)
Contested income tax liens?
Alimony, child support, maintenance
Any estimated capital gains tax on the unrealized asset appreciation?
Other expenses Other special debt or circumstances?
Total Income $ Total Expenditures $ If “yes” to any question(s) describe:
(COMPLETE SCHEDULES AND SIGN ON REVERSE SIDE OR NEXT PAGE)
Total contingent Liabilities $
SCHEDULE A – CASH, CHECKING AND SAVINGS ACCOUNTS, CERTIFICATES OF DEPOSIT, MONEY MARKET FUNDS, ETC.
Name of Financial Institution Type of Account Owner (J) If Pledged, to Whom? Balance
SCHEDULE B – U.S. GOVERNMENT & MARKETABLE SECURITIES (Use additional sheet if necessary)
Number of Shares or Face Value of Bonds
Description In Name of Are these Registered, Pledged, or Held by Others?
Market Value Exchanges Where Traded
SCHEDULE C –NON-MARKETABLE SECURITIES (Use additional sheet if necessary)
Number of Shares Description In Name of Are these Registered, Pledged, or Held by Others?
Value Method of Valuation
SCHEDULE D – INVESTMENTS IN REAL ESTATE (Use additional sheet if necessary)
Description/Location of Real Estate
Investment
(J) Date of Original Investment/Amount
% Owned By You
Market Value of Your % of Investment
Present Balance Monthly Payment
Mortgage Maturity Date
Mortgage Owed To
SCHEDULE E – LIFE INSURANCE CARRIED, INCLUDING GROUP INSURANCE
Name of Insurance Company
Owner of Policy Beneficiary and Relationship
Face Amount Policy Loans Cash Surrender Value
SCHEDULE F – VESTED INTEREST IN DEFERRED COMPENSATION/PROFIT-SHARING PLANS
% Vested
Company Name Account Number Manner of Payout (Annuity, Lump Sum, etc.)
Distribution Date
Beneficiary Amount
SCHEDULE G – BUSINESS VENTURES (Use additional sheets if necessary)
List Name and Address of Any Business Venture In Which You
Are a Principal or Partner
Your Position/Title in the Business
Line of Business
Years in Business
Total Assets Listed in Section 3
Your % of Ownership
Net Worth of Business
Present Net Value of Your
Investment
SCHEDULE H – ALL LOANS OWING BANKS, BROKERS, FINANCE COMPANIES, AND OTHERS (MASTERCARD, VISA, ETC.) ATTACH LIST IF NOT SUFFCIENT SPACE PROVIDED
Owing to (Account No.)
(J) Date of Original Borrowing/Amount
Present Balance Due Monthly Payment
Date of Final Pmt.
Secured by
The information contained in this statement is provided to induce you to extend or to continue the extension of credit to the undersigned or to others upon the guaranty of the undersigned. The undersigned acknowledges and understands that you are relying on the information provided herein in deciding to grant or continue credit or to accept a guaranty thereof. Each of the undersigned represents, warrants and certifies that (1) the information provided herein is true, correct and complete and gives a correct and complete showing of the financial condition of the undersigned, (2) the undersigned has no liabilities direct, indirect or contingent except as set forth in this statement, and (3) legal and equitable title to all assets listed herein is in the undersigned’s sole name, except as may be herein otherwise notes. Each of the undersigned agrees to notify you immediately and in writing of any change in name, address, or employment and of any material adverse change (1) in any other information contained in this statement or (2) in the financial condition of any of the undersigned or (3) in the ability of any of the undersigned to perform its (or their) obligations to you. In the absence of such notice or a new and full written statement, this should be considered as a continuing statement and substantially correct. You are authorized to make all inquiries you deem necessary to verify the accuracy of the information contained herein, and to determine the credit-worthiness of the undersigned and the undersigned hereby authorizes all persons of whom you make such inquiries to respond thereto in full. Each of the undersigned authorizes you to answer questions about your credit experience with the undersigned. Each of the undersigned represents, warrants and certifies that none of the above assets are held in trust, and will notify you immediately if any of the above assets are transferred to a trust.
BEFORE SIGNING, SEE THAT ALL QUESTIONS HAVE BEEN ANSWERED AND ALL BLANKS FILLED
1st Party – Please sign below Other Party – Please sign below
X X
Date Signed: Date Signed:
BORROWER PAYMENT AUTHORIZATION
(ELECTRONIC SERVICING AND COLLECTION)
The undersigned Borrower(s) (collectively "Borrower") hereby request and authorize Peak Equity Group, LLC, or its assignee (herein "Lender"), to initiate withdrawals (debit transactions) from and deposits (credit transactions) to the deposit account (the "Account") having the account number listed below at the financial institution listed below (the "Financial Institution"). BORROWER AND LOAN INFORMATION
Borrower: ________________________________ Property Address: ________________________________ Loan Number: ________________________________ ELECTRONIC SERVICING – FINANCIAL INSTITUTION INFORMATION
Financial Institution: ________________________________ Financial Institution Address: ________________________________ ________________________________ ABA Routing #: ________________________________ Account Number: ________________________________ Name on Account: ________________________________ (If Different from Borrower’s Name)
Please verify with your Bank the Routing #’s applicable for deposits and withdrawals. With certain financial institutions it may be 2 separate routing numbers please ask your Bank Representative.
INITIAL TERMS AND CONDITIONS
1. IDENTIFICATION OF TRANSACTION. This Authorization is being executed by Borrower in connection with a loan from Lender to Borrower evidenced by a promissory note executed by Borrower in favor of Lender (the "Note"). This Authorization is for the purpose of permitting Lender to withdraw funds from the Account to make payments due by Borrower under the Note and related loan documents and to permit Lender to deposit into the Account disbursements of construction funds held by Lender in escrow in accordance with a certain Construction Agreement between Borrower and Lender. Payments due under the Note and other loan documents may vary from month to month and BORROWER AGREES THAT DEBIT TRANSACTIONS MAY VARY IN AMOUNT.
2. TERM AND CANCELLATION. This Authorization shall remain in effect until (a) the Note is paid in full, or (b) the Authorization is terminated by borrower by providing written notice of termination at least thirty (30) days prior to the designated termination date. This Authorization may be terminated by Lender for any reason in Lender's sole discretion, including, without limitation, if a debit transaction from the Account cannot be made due to, but not limited to, insufficient funds, a stop payment order, or closure of the account.
3. ACCOUNT INFORMATION. The above Account information was supplied to Lender by Borrower or an authorized agent of Borrower. The Borrower, or authorized agent, as the case may be, has reviewed this information for accuracy. Lender may request that the Financial Institution provide a "Verification of Deposits," however it is the Borrower's responsibility to insure the accuracy of all Account information. Borrower and/or its authorized agent hereby indemnify and hold harmless Lender and its members, officers, employees, agents, successors and assigns from and against any claims, actions, damages, liability and expense (including reasonable attorneys' fees), directly or indirectly arising out of the inaccuracy of the Account information or the undersigned's authority to authorize the transactions contemplated herein. If any action or proceeding is brought against Lender or any of its members, officers, employees, agents, successors or assigns by reason of the aforementioned causes, Borrower and/or its authorized agent agrees to defend such action or proceeding at its own expense by counsel satisfactory to Lender.
4. DELIVERY METHODS. Funds from debit transactions initiated by Lender will be transferred from the Account via the ACH (Automated Clearing House) System. Funds from credit transactions will be transferred from Lender to the Account via a wire transfer.
5. DEBIT TRANSACTIONS
a. Debit transactions may include amounts for Principal, Interest, and Late Charges (as defined in the Note), and other additional debits as approved by the Borrower. Debit amounts may vary on a monthly basis as described in the Note.
b. Debit transactions will be made on the 2nd of every month
c. In the event a debit transaction from the Account cannot be made due to, but not limited to, insufficient funds, a stop payment order, or closure of the account, Lender may re-initiate the debit transaction on the 12th of the month.
d. Should the 2nd or 12th of the month fall on a non-business day (Saturday, Sunday, Federal Reserve Bank Holiday or other day on which the Financial Institution is not open for business), the debit transaction will take place on the next business day.
e. In the event a debit transaction has been made from the Account in error, or the Financial Institution's statement discloses a debit transaction not in accordance with this Authorization, Borrower must notify Lender of the alleged error for resolution within 30 days after the earlier of Borrower's discovery of the alleged error or the date of the statement reflecting the alleged error. In the event a debit transaction is made from the Account, not in accordance with this Authorization, Lender will operate in accordance with Federal Reserve Regulation E. In the event Borrower protests a debit transaction that was in accordance with this Authorization, Borrower may be liable for certain damages or penalties and Borrower may incur legal fees.
6. CREDIT TRANSACTIONS
a. Credit transactions may include deposits of construction funds, refunds for erroneous debits, or other additional credits as approved by Lender.
b. Credit transactions will be initiated as described in the “Construction Agreement”, or as described herein.
c. In the event a credit transaction has been made to the Account in error, Lender reserves the right to use any and all methods to recover such funds credited in error. Such methods include, but are not limited to, wire cancellation, wire recovery, and the debiting of the Account for funds credited in error.
7. ADDITION. In addition to the Terms and Conditions of this Authorization, Lender will not be liable if:
a. Available funds in Account are insufficient to support a debit transaction;
b. The funds held in the Account are subject to legal process or other encumbrances or restrictions which prevent the making of a debit transaction;
c. Acts of God, technical malfunction or other circumstances not within the control of Lender prevent making a debit transaction or credit transaction, despite reasonable precautions taken;
d. Debit transactions result in an overdraft on the Account and cause Borrower to be liable for fees or penalties;
e. The Financial Institution does not subscribe to the Federal Reserve’s Automated Clearing House (ACH) Banking System, or will not provide Lender with access to transfer funds on Borrower's behalf.
8. ATTORNEYS' FEES. In the event of any litigation relating to or arising from this Authorization, the prevailing party shall be entitled to recover from the other party the reasonable attorneys' fees and expenses incurred by the prevailing party in such litigation.
By signing below the Borrower accepts and agrees to the Terms and Conditions contained within this Borrower Payment Authorization.
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Borrower Date Borrower Date
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