This Agreement and Disclosure Statement “Agreement” between Nexity Bank and you applies to the checking account covered by this Demand Deposit Line of Credit. The words “you” and “your” refer to all owners of the covered checking account. The Nexity Bank Demand Deposit Line of Credit allows you to obtain loan advances on your line of credit through check, or an ATM card, as approved by Nexity Bank. Loan advances apply to any funds obtained from Nexity Bank that may exceed the funds available in your checking account.

Loan Advances
In the event that you write a check that overdraws your Nexity Bank Checking Account, Nexity Bank agrees to lend you money (up to the maximum credit limit) to cover the check. Your first loan advance indicates your consent to the terms of this Agreement. Advances are made in $100 increments up to the assigned credit limit.

Agreement to Pay
You agree to pay all loan advances obtained under this agreement plus any charges (including finance charges, collection costs or other amounts) due in accordance with this agreement. You are also responsible for repayment of any loans and charges created by persons authorized to use your checking account, whether or not they are owners of the account and have authorized this agreement.

Maximum Credit Limit
Nexity Bank will determine a maximum credit limit for you and may, upon request, raise such a limit. You agree to stay within said limit; if you exceed the limit, and additional moneys have not been approved, Nexity Bank reserves the right to return your check or otherwise refuse to pay the loan request. In the event that Nexity Bank agrees to lend you an amount over the maximum limit, you agree to repay the excess, immediately if requested.

Collection Costs
If Nexity Bank is forced to take collection action, you agree to pay all court costs and collection fees, including reasonable attorneys fees.

Financial Statements
In the event that Nexity Bank requires updated financial information for its records, you agree to provide the revised financial information for this purpose.

Statement
Nexity Bank will issue a monthly statement (in addition to checking account activity) that details loans, payments and credits made to this account during the billing cycle. In the event that corrections must be made to this statement, you will have 60 days to notify the bank of said changes. After 60 days, the statement will be considered correct and accepted.

Minimum/Final Payments
Nexity Bank requires a monthly minimum payment of at least 5% of any new balance or $20, whichever is greater. You may, at any time, pay a higher level payment or pay off all of the new balance at any time without penalty. You must contact Nexity Bank for the exact balance prior to making final payment, since the finance charge is computed daily.

Automatic Payments
Nexity Bank will automatically deduct the required monthly minimum payment from your account on or about the first day after the end of the billing cycle. If there are insufficient funds in the account to cover the minimum payment, Nexity Bank is under no obligation to advance an amount to make or cover the payment. Once sufficient funds become available, the minimum payment will be deducted. Nexity Bank may choose to allow a loan advance to make or cover the minimum payment. In the event that this occurs, the loan advance will be made in increments of $100.00 or the available line amount.

Entire Balance Due Upon Default
If a payment is not made within 15 days of its due date, Nexity Bank may serve notice of a right to cure default within 20 days. If you fail to exercise your right to cure default, or you cure the default after the notice is sent but you default within 12 months on a future payment, Nexity Bank reserves the right to terminate this agreement and declare the entire balance due and payable without notice or demand. In the event that the prospect of payment performance or realization of collateral is significantly impaired, Nexity Bank may declare the loan in default.

Security Interest
Nexity Bank reserves the "right of offset" to pay any loan advances. You agree to Nexity’s right of offset effective with the first loan advance on this line of credit. This means that the bank may use any amounts in any deposit accounts to repay the loan, in the event that you default on the loan. Nexity Bank also has the right to use collateral on any other loans with Nexity Bank to secure payment on this account. Otherwise, a Demand Deposit Line of Credit account is an unsecured loan, unless a separate security agreement has been signed, giving Nexity Bank a Uniform Commercial Code security interest in the personal property described in that agreement.

Finance Charge and Annual Percentage Rate
Nexity Bank will assess no finance charge on loans that are not outstanding. Loan advances for a Demand Deposit Line of Credit will carry a finance charge that accrues from the time of the advance and is based on the loan balance in your account each day during the billing cycle (after new loans have been added and payments and credits subtracted). To figure and impose the FINANCE CHARGE, we will apply the daily periodic rate shown on the face of your monthly Statement to the "average daily balance" of your credit account (including cash transactions). To get the "average daily balance" we will take the beginning balance of your credit account each day, add any new advances and subtract any payments or credits. This gives the daily balance. Then, we add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives us the "average daily balance." The average daily balance is or can be multiplied by the number of days in the billing cycle and the daily periodic rate applied to the product to determine the amount of the FINANCE CHARGE. The finance charge will be determined by multiplying the daily outstanding loan balance by the daily periodic rate of .0493%. The ANNUAL PERCENTAGE RATE of the Finance Charge is 18%. The finance charge will be computed daily until the end of the billing cycle when the charges will be posted to your checking account as an accumulated finance charge.

Change in Terms
Nexity Bank reserves the right to make any change in terms, including an increase in the cost of maintaining a Demand Deposit Line of Credit, if notice is sent to you. Such notice must be served at least 30 days before the start of the billing cycle in which the change is effective.

Cancellation of This Agreement
Nexity Bank has the right to cancel this agreement as to future loan advances at any time. Should this occur, Nexity Bank will mail notification of the reason for termination within 10 days. In the event that a tax lien or judgment is filed against you, or you file for bankruptcy, Nexity Bank reserves the right to terminate the account without notice. You may cancel this agreement at any time by notifying Nexity Bank in writing or by closing your checking account. Such notification becomes effective upon receipt. Whenever a Nexity Bank checking account is closed, the Demand Deposit Line of Credit is terminated without notice. Upon cancellation for any reasons other than default, this agreement continues until all amounts (including loan amounts not yet billed) at the time of cancellation are paid. Should you cancel this agreement, Nexity Bank reserves the right to require all amounts owed under this agreement be paid in full within 10 days after notice is given.

YOUR BILLING RIGHTS
This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act.

Notify Us in Case of Errors or Questions About Your Bill

If you think your Statement is wrong or if you need more information about a transaction on your bill, write to us (on a separate sheet) at the address listed on your bill. Write to us as soon as possible. We must hear from you no later than 60 days after we sent you the first bill on which the error or problem appeared. You may telephone us, but doing so will not preserve your rights.

In your letter, include the following information:

• Your full name and account number.
• The dollar amount of the suspected error.
• A description of the error (and if possible, an explanation of why this may have occurred). If you need additional information about what may be an error, describe the item.

If you have authorized us to pay your loan automatically from your savings or checking account, you can stop the payment on any amount you think is wrong. To stop the payment, your letter must reach us three business days before the automatic payment is scheduled to occur.

Your Rights and Our Responsibilities After We Receive Your Written Notice

We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the bill was correct.

After we receive your letter, we cannot try to collect any amount you question, or report you as delinquent. We can continue to bill you for the amount you question, including finance charges, and we can apply any unpaid amount against your credit limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your bill that are not in question.

If we find that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. If we didn't make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the questioned amount. In either case, we will send you a statement of the amount you owe and the date that it is due.

If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does not satisfy you and you write to us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, we must tell you the name of anyone we reported you to. Upon resolution, we must tell anyone we report you to that the matter has been settled between us when it finally is.

If we don't follow these rules, we cannot collect the first $50 of the questioned amount, even if your bill was correct.

Your Deposit Account Terms and Conditions Disclosure | Truth-in-Savings Disclosure | Your Ability to Withdraw Funds Disclosure | Electronic Funds Transfers Disclosure | Notice of ATM User Disclosure Personal Overdraft Protection Guarantee Agreement | Demand Deposit Line of Credit Agreement | Home Equity Disclosures | Customer Complaint Policy