Planning Guide
For Open-End
Consumer Lending
MXPG18
TABLE OF CONTENTS
Chapter 1 Introduction to the Planning Guide
1-1
Features of the Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2
Service and Support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3
Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4
Chapter 2 Open-End Lending Requirements
2-1
Open-End Credit Definition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1
Open-End Disclosure Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5
Change in Terms Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5
Chapter 3 Format Comparison
3-1
Simplified Agreement Format. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2
Flexible Agreement Format. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-3
Packaged Agreement Format. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4
Chapter 4 LOANLINER® Credit Agreement Analysis
4-1
Section 1 – Choose a Plan Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1
Credit Agreement Analysis Questions: Instructions for Section 1. . . . . . . . . . . 4-6
Section 2 – Choose a Credit Agreement Format . . . . . . . . . . . . . . . . . . . . . . 4-9
Credit Agreement Analysis Questions: Instructions for Section 2. . . . . . . . . . 4-11
Open-End Planning Guide — Contents 1
Chapter 5 Additional LOANLINER® Documents
5-1
Special State Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1
Addendum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-3
Applications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-4
Vouchers and Disbursement Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-9
Vouchers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-9
Open-End Voucher with Security Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-10
Open-End Advance Request. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-12
Open-End Voucher (Short Version). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-12
Disbursement Receipt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-13
Pre-Approved Payment Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-13
Miscellaneous Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-14
Adverse Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-14
Guaranty Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-14
Notice to Co-Signer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-15
Subsequent Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-15
Endorsement Language. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-15
Security Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-16
Permanent Security Agreement PLUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-16
Document Folder. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-16
Open-End Planning Guide — Contents 2
Chapter 6 How to Build an Addendum
6-1
Building an Addendum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-1
Installation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-3
Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-10
Generating Your Addendum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-13
Frequently Asked Questions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-14
Addendum Sample. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-17
Chapter 7 Ordering Information
7-1
How to Complete Order Form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-2
LOANLINER® Credit Agreement Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-3
Order Form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-5
Copyright © 1998, 99, 2000-02, 04, 05, 09, 10, 11, CUNA Mutual Group, Madison, Wisconsin. ALL RIGHTS RESERVED.
Open-End Planning Guide — Contents 3
CHAPTER 1
INTRODUCTION TO THE PLANNING GUIDE
The purpose of this Planning Guide is to assist you in developing an
Open-End lending program. Regardless of whether you are new to
LOANLINER® or are switching to a different Plan Option/format
combination, you need to make some important decisions before you select
which LOANLINER® documents to use in your credit union. This planning
guide offers you information to use in making these decisions along with
selecting the best documents for your credit union and members. The guide
provides information that will help you do the following:
• Learn the advantages of using an Open-End lending program in
your credit union.
• Discover how the LOANLINER® Program can help you meet the
needs of your members.
• Understand the differences between our two (2) Credit Plan
Options and our three (3) Credit Agreement formats.
• Choose the LOANLINER® Plan Option/format combination that
best suits your credit union’s lending policies and operations and
helps you meet your lending goals.
• Select the documents that fit into your credit union’s lending
environment.
• Contact the LOANLINER® Department and order your
LOANLINER documents.
You should use this Planning Guide if you are doing any of the following:
• Switching to new LOANLINER® documents.
• Switching to a different LOANLINER® Plan Option.
• Switching to a different Credit Agreement format.
• Installing the LOANLINER® Program.
The LOANLINER® Open-End Consumer Lending Program is designed
to help your credit union succeed in the ever-changing world of
consumer lending and take your lending program into the future. The
LOANLINER® Program is designed solely for credit unions, based on
credit union input and research on lending trends in the industry.
The LOANLINER® Program offers three (3) different Open-End Credit
Agreement formats that use Credit Agreements designed to perform in
Open-End Planning Guide — Introduction 1-1
various lending environments. The three (3) formats are the Simplified
Agreement, Flexible Agreement and Packaged Agreement. They vary by
format and by how they are used. These differences are discussed in more
detail later in this guide.
There are two (2) options available for each Credit Agreement format:
• Basic Option of any format keeps the Credit Agreement and
Security Agreement as separate documents.
• PLUS Option of any format combines the Credit Agreement and
Security Agreement into one (1) document.
The differences between the Basic and PLUS options are discussed in more
detail later in this guide.
With these descriptions in mind, there are six (6) Plan Option/Credit
Agreement format combinations to choose from. They are referred to as
follows:
Simplified Agreement
Flexible Agreement
Packaged Agreement
Simplified Agreement PLUS
Flexible Agreement PLUS
Packaged Agreement PLUS
After you review the guide, you will be able to select the format that will
best suit your credit union’s lending policies and operations.
The LOANLINER® Program consists of quality loan documents that
comply with consumer credit laws and regulations. The program
provides lending and compliance expertise and support. The program
includes the following components:
• Documents – available in several formats – paper, electronic and
electronically through loanliner.com
• Service and Support
• Lending and Compliance Expertise
• Resources
Features of the Documents
One of the most valued components of the LOANLINER® Open-End
Consumer Lending Program is the lending documents. Some key features
of the documents are listed below.
• The documents are designed exclusively for credit unions.
• The documents comply with federal consumer credit laws.
Open-End Planning Guide — Introduction 1-2
• The documents support open-end and provide an easy way to
cross-sell credit cards. (Closed-end documents are also available
but are not addressed in this guide.)
• The documents are streamlined to reduce the time and paperwork
involved in processing loans.
• The documents are supported by major data processors.
• The documents integrate payment protection coverage enrollment
into the lending process.
• The documents give you the flexibility you need to do lending
your way. For example, there are documents for:
– Credit unions that support remote-access methods to their
lending programs.
– Credit unions that primarily conduct business using face-toface contact.
– Credit unions with members that use the Internet to apply
for credit can now access the Open-End documents through
loanliner.com.
– Credit unions that require electronic documents for their
lending programs.
Service and Support
A key feature of any product you use is the service and support that
goes with it. You can rely on CUNA Mutual Group to provide you with
excellent support and service for the LOANLINER® Open-End Program.
You can receive LOANLINER® assistance by:
• Calling your CUNA Mutual representative at:
1-800-356-2644
• Contacting the LOANLINER® Department at:
Phone:
1-800-356-5012
Fax:
1-608-236-6891
E-Mail: loanliner@cunamutual.com
Mail:
LOANLINER® Department
CUNA Mutual Group
PO Box 2991
Madison, WI 53701-2991
Open-End Planning Guide — Introduction 1-3
Lending and Compliance Expertise
The LOANLINER® Program has been part of credit unions’ lending
success for decades and is currently being used by nearly 7,000 credit
unions. Our work with these credit unions has helped us develop a high
degree of lending expertise. You will have direct access to this expertise
via any of the channels previously described.
Resources
In addition to this Planning Guide, the LOANLINER® Program provides
the following resources for your credit union:
• Document Guide
• User Guide
• LOANLINER® Lending Resource Center
• Lending Resource Newsletter
• Local support from your CUNA Mutual representative
• LOANLINER® staff
Open-End Planning Guide — Introduction 1-4
CHAPTER 2
OPEN-END LENDING REQUIREMENTS
Open-End Credit – Defined
Under the Truth-in-Lending Act and its implementing regulation,
Regulation Z, credit is considered open-end if it satisfies the definition
of open-end credit in the Act and Regulation. If a loan does not meet the
definition of open-end credit, it is closed-end credit. There is no definition
of closed-end credit other than it is credit that is not open-end credit.
Regulation Z, Section 226.2(a)(20) defines open-end credit as consumer
credit extended by a creditor under a plan in which:
1. the creditor reasonably contemplates repeated transactions;
2. the creditor may impose a finance charge from time to time on an
outstanding unpaid balance; and
3. the amount of credit that may be extended to the consumer
during the term of the plan (up to any limit set by the creditor)
is generally made available to the extent that any outstanding
balance is repaid.
Detailed Explanation of Open-End Definition
Existence of a Plan
The first requirement is that there be a “plan” to extend consumer credit.
A plan connotes a contractual arrangement between the creditor and the
consumer. The consumer has a single account with the institution that can
be accessed repeatedly via a number of subaccounts established for the
different program features and rate structures. The LOANLINER® Credit
Agreement and Addendum are used to create the plan. The Agreement
explains the terms and conditions under which advances will be made,
and the Addendum includes the Account Opening Disclosure in a table
format. The Addendum describes the types of subaccounts that are
available under the plan along with rates specific to each member and
fees included in the Account Opening disclosure table.
There is a common misperception that open-end credit is limited to
credit cards, lines of credit and share draft/overdraft lines of credit. The
Commentary to Regulation Z, Section 226.2(a)(20)-2, recognizes that
lenders use open-end credit to offer different types of credit:
Open-End Planning Guide — Lending Requirements 2-1
Some creditors offer programs containing a number of different credit
features. The consumer has a single account with the institution that can be
accessed repeatedly via a number of subaccounts established for the different
program features and rate structures. Some features of the program might be
used repeatedly (for example, an overdraft line), while others might be used
infrequently (such as the part of the credit line available for secured credit). If
the program as a whole is subject to prescribed terms and otherwise meets the
definition of open-end credit, such a program would be considered a single,
multifeatured plan. [Commentary at Section 226.2(a)(20)-2.]
The existence of a Plan, outlines the basic concepts of multifeatured openend lending; a plan with subaccounts, some subaccounts used frequently
(overdraft subaccount), some used infrequently, (secured subaccount),
and lastly as long as the plan as a whole meets the definition of open-end
credit, it is considered a single multifeatured plan.
Repeated Transactions
The second requirement is that the creditor must reasonably contemplate
repeated transactions. This means:
“that the credit plan must be usable from time to time and the creditor must
legitimately expect that there will be repeat business rather than a one-time
credit extension. The creditor must expect repeat dealings with the consumer
under the credit plan as a whole and need not believe the consumer will reuse
a particular feature of the plan.” [Commentary at Section 226.2(a)(20)-3.]
Credit unions expect their members to borrow from them from time to
time, so they usually have no problem meeting this criterion. As long as
the plan, as a whole, can be used from time to time, it does not matter if
part of the plan is not reused or never used by a particular member. Most
credit unions include a line of credit subaccount or overdraft subaccount
as part of the plan as those subaccounts are often used frequently.
Finance Charge Imposed From Time to Time
The third requirement, that a finance charge be imposed from time to
time on an outstanding balance, is met by charging interest on all plans.
The actual interest rate (Annual Percentage Rate) for various subaccounts
is disclosed on the addendum.
Open-End Planning Guide — Lending Requirements 2-2
Reusable Line
The final requirement is that the account be reusable. This is probably the
most misunderstood requirement. It does not require you to establish a
credit limit for the plan or for any subaccount. You may occasionally or
routinely verify credit information, but not as a condition for a particular
advance under the plan. As the Commentary [Section 226.2(a)(20)-5]
explains:
The total amount of credit that may be extended during the existence of an
open-end plan is unlimited because available credit is generally replenished as
earlier advances are repaid.... The creditor may occasionally or routinely
verify credit information such as the consumer’s continued income and
employment status or information for security purposes but, to meet the
definition of open-end credit, such verification of credit information
may not be done as a condition of granting a consumer’s request for
a particular advance under the plan. In general, a credit line is selfreplenishing if the consumer can take further advances as outstanding
balances are repaid without being required to separately apply for those
additional advances.... This criterion does not mean that the creditor must
establish a specific credit limit for the line of credit or that the line of credit
must always be replenished to its original amount. The creditor may reduce a
credit limit or refuse to extend new credit in a particular case due to changes in
the creditor’s financial condition, or the consumer’s creditworthiness.
To occasionally or routinely verify credit information, we must assume
that a credit union can verify information from time to time according
to established procedure. This means that verification can still occur,
but it should not happen all the time, and that when it does, it is based
on established procedures, such as a credit union’s lending policies and
procedures.
From a practical standpoint, how can a credit union verify information?
First, adhering to the rules entails verifying as little information as
you need. Second, the more you have transactions that require little
verification, the better you are positioned when you need to do a little
more verification on an occasional basis.
There’s no single right way to verify information. Here are some options
that may be helpful for credit unions:
• Ask members if they have changes to identified items, pursuant
to your policy. For example, if the credit union’s policy calls for
verifying continued creditworthiness for an advance greater than
$XXX – which constitutes “occasional” verification not for the
Open-End Planning Guide — Lending Requirements 2-3
individual advance, but for the situation – and the verification will
be of continuing employment and income, you can ask members
if they are still employed and still make the previously stated
amount of money.
• A credit union’s policy may call for different degrees of verification.
For example, for a line of credit subaccount, the policy may specify
verifying the member’s identity and confirming that they are current
with payments. For advances over a certain amount, the policy may
require verification of continued employment or income.
• Routine updates of credit information are always a best practice.
These updates can be done periodically by credit bureaus or
in other ways. This allows the credit union to maintain current
information on members so its verification needs are small.
Verification of Collateral Value
In addition, the commentary to Regulation Z addresses verification of
collateral value. The section states:
Verifications of collateral value. Creditors that otherwise meet the
requirements of Section 226.2(a)(20) extend open-end credit notwithstanding
the fact that the creditor must verify collateral values to comply with federal,
state, or other applicable law or verifies the value of collateral in connection
with a particular advance under the plan.
Regulation Z recognizes that lenders are required by regulators to verify
the value of collateral when making an advance. Thus, when collateral is
pledged as part of an open-end plan, the regulation allows verification of
certain ratios like loan to value.
Summary
Open-end plans can be for any amount and have any repayment
schedule. Open-end plans can be used to make advances to purchase
vehicles, boats, computers and vacations. You can have subaccounts
that are used infrequently, such as one to purchase a new vehicle, and
others that are used all the time, like a share draft/overdraft line of
credit. You can establish a credit limit for some subaccounts like an
overdraft subaccount, but not for other subaccounts such as a new vehicle
subaccount.
An open-end plan can be structured to give you the control and flexibility
you need for making various types of advances.
Open-End Planning Guide — Lending Requirements 2-4
NOTE: Although you can do virtually any kind of lending on open-end,
that does not mean you should mix credit secured by real estate with
other consumer credit under the LOANLINER® Open-End Plan. Because
there are special Truth-in-Lending disclosures and requirements for openend credit secured by the consumer’s dwelling, the LOANLINER® OpenEnd Plan should not be used. (A separate LOANLINER® home equity
system is available.)
Open-End Disclosure Requirements
If you are offering open-end plans, Section 226.6 of Regulation Z requires
disclosure of information in an Account Opening Disclosure table.
These disclosures are made in the LOANLINER® Credit Agreement and
Addendum. The Addendum includes the Account Opening Disclosure
table and discloses the types of credit that are available under your plan,
their periodic rates and corresponding annual percentage rates (APRs).
The Addendum must also include any other charges that you impose
in connection with your open-end plan, such as late fees, over-the-limit
charges and collection costs.
A periodic statement for your open-end plan is required for each billing
cycle and must meet the disclosure requirements in Section 226.7(b) of
Regulation Z.
If you change certain terms of your plan, you must comply with the
change in terms notice requirements of Section 226.9(c)(2) of Regulation
Z, which are described in the next section.
Change-in-Terms Rules
Regulation Z Section 226.9 deals with subsequent disclosure
requirements. Among those requirements are disclosures when a credit
union changes the terms of a credit agreement. This section will deal with
the rules regarding changes in terms. The changes include changes to the
timing, format, and content of change-in-terms notices.
Timing
When a term required to be disclosed under Section 226.6 (Account
Opening Disclosures) is changed or the required minimum periodic
payment is increased, a credit union must provide a written notice of the
change at least 45 days prior to the effective date of the change to each
consumer who may be affected.
Open-End Planning Guide — Lending Requirements 2-5
G-20 Change-in-Terms Sample
Important Changes to Your Account Terms
The following is a summary of changes that are being made to your
account terms. You have the right to opt out of these changes. For more
detailed information, please refer to the booklet enclosed with this
statement.
These changes will impact your account as follows:
Transactions made on or after 4/2/12: As of 5/10/12, any changes to
APRs described below will apply to these transactions.
Transactions made before 4/2/12: Current APRs will continue to apply
to these transactions.
If you are already being charged a higher Penalty APR for purchases:
In this case, any changes to APRs described below will not go into effect
at this time. These changes will go into effect when the Penalty APR no
longer applies to your account.
Revised Terms, as of 5/10/12
APR for Purchases
16.99%
Late Payment Fee
$32 if your balance is less than or equal
to $1,000;
$39 if your balance is more than $1,000
Format and Content
There are two rules for change-in-terms notices, depending on whether
the term changed is a term required to be disclosed in the table under
Section 226.6. If a credit union changes a term required to be disclosed in
the table, it must provide the following information:
1. A summary of the changes made.
2. A statement that changes are being made to the account.
3. A statement indicating the consumer has the right to opt out
of these changes, if applicable, and a reference to additional
information describing the opt-out right provided in the notice,
if applicable.
4. The date the changes will become effective.
Open-End Planning Guide — Lending Requirements 2-6
5. If applicable, a statement that the consumer may find additional
information about the summarized changes, and other changes to
the account, in the notice.
6. If the change in terms being disclosed is an increase in an APR, the
balances to which the increased rate will be applied.
The notice containing this information must be given in a form of a
table similar to the table required in Section 226.6 for account opening
statements. (See the Sample Change Form G-20 on Page 2-6.)
The information must be in at least a 10-point type size. As with the
account opening disclosures, the change-in-terms table must contain
information at the same level of detail as required as with the accountopening disclosures. If you include the change-in-terms notice with a
periodic statement, the summary of changes needs to appear on the front
of every page of the statement.
Open-End Planning Guide — Lending Requirements 2-7
CHAPTER 3
FORMAT COMPARISON
This chapter lists an overview of features and benefits for each of the
three (3) LOANLINER® Credit Agreement formats. The features and
options of each format are further broken down into either the Basic or
PLUS options. This chapter will allow you to quickly compare the formats.
Open-End Planning Guide — Format Comparison 3-1
Simplified Agreement Format
Features
Benefits
Works best for
credit unions that:
Basic Option
PLUS Option
•Credit Union Copy integrates
an express application
with the Open-End Plan
Signatures. This document
obtains the borrower’s
agreement to the Plan.
•Borrower Copy is a
compact, single sheet
brochure which contains
the Credit Agreement.
•Easy for the member to
apply for both open-end
credit and a credit card.
•Includes payment protection
election for open-end credit.
•Contains the same features
as the Basic Option with the
addition of an integrated
permanent Security
Agreement.
•Allows the credit union
to always deposit funds
directly into the borrower’s
account without obtaining
additional signatures
•Want to reduce the number
of signatures to one (1) for
both the application and
Credit Agreement
•Want a convenient way
to cross-sell Open-End
LOANLINER® and a credit
card
•Want a separate signed
Security Agreement for
secured advances
•Want the application and
agreement to the terms of
the Open-End Plan to occur
in one (1) step (i.e. when
the borrower signs the
Credit Union Copy)
•Want one (1) signature
for the application, Credit
Agreement and Security
Agreement
•Want to deposit funds for
secured advances directly
into the borrower’s account
•Do not need to file a
separate signed Security
Agreement for secured
advances
•Want the application and
agreement to the terms of
the Open-End Plan and
Security Agreement to
occur in one (1) step (i.e.
when the borrower signs
the Credit Union Copy)
•Do both secured and
unsecured lending under
their Open-End Plan
Open-End Planning Guide — Format Comparison 3-2
Flexible Agreement Format
Features
Benefits
Works best for
credit unions that:
Basic Option
PLUS Option
•Credit union can use any
application method they
choose (ex. loans-byphone, Internet, walk-in,
electronically generated)
•Credit Union Copy contains
Credit Agreement so there
is a signed agreement in the
borrower’s file
•Borrower Copy is a
compact, single sheet
brochure which contains
a copy of the Credit
Agreement
•Contains the same features
as the Basic Option with the
addition of an integrated
permanent Security
Agreement
•Allows the credit union
to always deposit funds
directly into the borrower’s
account without obtaining
additional signatures
•Prefer to use a separate
application such as loansby-phone, Internet, walk-in,
electronically generated
•Want a signed Credit
Agreement in the
borrower’s file
•Want a separate signed
Security Agreement for
secured advances
•Use a variety of application
methods, such as loans-byphone, Internet, walk-in,
electronically generated
•Want a signed Credit
Agreement in the
borrower’s file
•Want to deposit funds for
secured advances directly
into the borrower’s account
•Do not need to file a
separate signed Security
Agreement for secured
advances
•Do both secured and
unsecured lending under
their Open-End Plan
Open-End Planning Guide — Format Comparison 3-3
Packaged Agreement Format
Features
Benefits
Works best for
credit unions that:
Basic Option
PLUS Option
•Credit union can use
any application method
they choose (ex. loan-byphone, Internet, walk-in,
electronically generated)
•Credit Union Copy and
Borrower Copy are
packaged into one (1)
document, so both credit
union and borrower get a
signed copy of the Credit
Agreement
•Contains the same features
as the Basic Option with the
addition of an integrated
permanent Security
Agreement
•Allows the credit union
to always deposit funds
directly into the borrower’s
account without obtaining
additional signatures
•Prefer to use a separate
application, such as
loans-by-phone, Internet,
electronically generated
•Want both the Credit
Union Copy and Borrower
Copy packaged together in
one (1) document
•Want both the credit union
and the borrower to have
a signed Credit Agreement
for their file
•Have a lot of members who
prefer to conduct business
by mail
•Want a separate signed
Security Agreement for
secured advances
•Do both secured and
unsecured lending under
their Open-End Plan
•Use a variety of application
methods, such as loans-byphone, Internet, walk-in,
electronically generated
•Have a lot of members who
prefer to conduct business
by mail
•Want to deposit funds for
secured advances directly
into the borrower’s account
•Do not need to file a
separate signed Security
Agreement for secured
advances
Open-End Planning Guide — Format Comparison 3-4
CHAPTER 4
LOANLINER® CREDIT AGREEMENT ANALYSIS
This chapter contains a Credit Agreement Analysis, which will assist you
in determining which Credit Agreement format and what plan option to
use. The Credit Agreement analysis is located on pages 6-3 and 6-4 of this
guide. The analysis is broken into two (2) sections:
Section 1 outlines your Plan Option selection
Section 2 outlines your Credit Agreement format selection
General information on each section is provided first and then detailed
explanations of the questions on the Credit Agreement Analysis are
outlined.
Section 1 – Choose a Plan Option
General Information
You may choose from two (2) Plan Options for Open-End lending. These
Options are referred to as the “Basic” Option and the “PLUS” Option.
The difference between the two (2) Options are the agreements included
in the documents used to establish the Plan. The Basic Option contains
a Credit Agreement whereas, the PLUS Option integrates the Credit
Agreement and Security Agreement. Under either Option, the disclosures
are given and the agreements are signed at the time that the Plan is
opened.
Credit Agreement
A Credit Agreement is a legal document signed by the borrower(s). It
contains the legal promises, such as the promise to repay all the money
borrowed and defines the terms and conditions of the Open-End plan.
The required Truth in Lending disclosures are also included in the Credit
Agreement. An Addendum is used with a Credit Agreement to disclose
the Account Opening Disclosure table required by Regulation Z 226.6(b),
subaccounts, various fees and terms of the plan. The Credit Agreement
is signed just once at the time the plan is opened. The terms in the Credit
Agreement then apply to all advances obtained under the plan.
Open-End Planning Guide — Credit Agreement Analysis 4-1
Security Agreement
A Security Agreement is a legal document in which the owner(s) of the
collateral provide property as security for the advance. It is the document
that allows the credit union to repossess the property if the borrower
does not pay or is otherwise in default. The owner(s) may sign either
the Security Agreement itself or may agree to the terms of the Security
Agreement by signing an endorsement on the back of the proceeds check.
Basic Option
The Basic Option includes only the Credit Agreement. With this Option,
it is expected that whenever the borrower offers collateral as security for
an advance, the collateral owners will agree to the terms of a Security
Agreement by signing a Voucher or a separate Security Agreement at the
time of the advance.
Thus, the Basic Option requires two (2) signatures. One signature is for
agreeing to the terms of the Credit Agreement when the Plan is opened.
The second signature is for agreeing to the terms of the Security Agreement
at the time of each advance if collateral is offered. If no collateral is offered
as security then there is no need to sign a Security Agreement.
PLUS Option
The PLUS Option combines the Credit Agreement and Security
Agreement into one (1) document. That means the borrower has to sign
agreeing to the terms and conditions of both agreements only once, when
the Plan is established.
This streamlines the lending process because when the borrower offers
collateral to secure the plan, no additional signatures are needed at the
time of an advance. The credit union only has to send the borrower a
receipt or other document which clearly describes the collateral being
offered as security and the payment terms. The LOANLINER® Program
offers a Disbursement Receipt that should be used with the PLUS Option
for this purpose.
Switching to PLUS
If you are currently using the LOANLINER® program, but you are switching
to the PLUS Option, which includes the combined Credit and Security
Agreements, you will use a Disbursement Receipt to document advances.
However, the borrowers that already have an Open-End plan never signed a
permanent Security Agreement. As a result, you cannot automatically use a
Disbursement Receipt to document advances with existing plans.
Open-End Planning Guide — Credit Agreement Analysis 4-2
There are two (2) ways you can document advances for borrowers with
existing plans. The method you select will depend on your credit union’s
procedures and ability to code each plan. You can do either of the following:
• Continue to use a Voucher for secured advances made under the
previous plan.
• Order a PLUS Permanent Security Agreement. When the borrower
requests the next advance, have the borrower sign the Permanent
Security Agreement which will then be on file at the credit union.
Once you have done this, you can use a Disbursement Receipt to
document all future advances.
Option Selection
The first step in identifying whether you should use the Basic or PLUS
Option is to determine what type of lending you will be doing under your
Open-End plan. Each different type of advance (e.g. vehicle, overdraft
line, etc.) is called a “subaccount.” Each subaccount will be listed on the
Addendum that you give to the borrower with the Credit Agreement
when the plan is opened.
Some credit unions use the Open-End plan for a limited number of
subaccounts such as line of credit and/or overdraft protection. Others
use the Open-End plan for almost all types of consumer credit offered by
the credit union. The LOANLINER® Plan should not include subaccounts
listed below because they require different disclosures:
• Mobile Homes
• Real Estate Loans including Home Equity loans
• Credit Cards**
• Insured Student Loans
Review the general considerations found on the next page to help you
make your decision on which Plan Option to choose.
**The LOANLINER® Program offers specific documents which permit
a member to apply for a credit card, but you will need to provide the
member with a LOANLINER® Credit Card Agreement and Credit Card
Account Opening Disclosure.
Open-End Planning Guide — Credit Agreement Analysis 4-3
General Considerations
Here are some things you should consider when deciding whether to use
the Basic or PLUS Option.
Consideration
Best Option
1.The only subaccounts that you offer are ones that are not secured by any collateral other than shares.
If the only subaccounts that you offer are ones that are
not secured (line of credit, overdraft protection,
signature), select the Basic Option because you do not
need a Security Agreement as part of the Plan.
Basic
2.You lend primarily in a state or states that require filing
Security Agreement copies when you are doing secured
lending. Filing states include: AR, CO, DC, LA, NE, OH,
SD, WY.
Some states require that you file a copy of a signed Security
Agreement with a local government agency such as the
Department of Motor Vehicles. That Security Agreement
must include a description of the collateral offered to
secure the loan advance. Usually the filing requirements
relate primarily to collateral such as motor vehicles.
Basic
If you lend primarily in filing states, you will not want to
use the PLUS Option, under which the Security
Agreement is signed at the beginning of the Plan rather
than with each advance.
3.You lend primarily in a state which does not have filing requirements.
If you lend primarily in non-filing states but occasionally
loan in a filing state, you can use the PLUS Option for most
of your loans, and order separate Security Agreements to
be used for secured loan advances made in filing states.
PLUS
4.You lend primarily in a filing state but only make loans
that are secured by collateral for which a Security
Agreement does not need to be filed.
Even in filing states, some collateral secured loans do not
require a filed copy of the Security Agreement. Examples
would be share or certificate secured loan advances.
PLUS
If you have determined that you must use the Basic Option based on the
information above, you do not need to review the additional considerations
listed in this chapter, you can proceed to page 4-9 Section 2, Choose a
Credit Agreement format.
Open-End Planning Guide — Credit Agreement Analysis 4-4
Additional Considerations
If you can use either the PLUS or Basic Option based on the information
provided so far, you need to decide which Option will work better with
your credit union’s procedures and operations. Consider the information
below to determine which Option you want to use.
Basic Option Features
The Basic Option will accommodate your lending needs better if:
• Your members come to the credit union regularly to request
advances and pick up the check.
• You want a signed Voucher/Security Agreement at the time the
borrower gets an advance.
• Your attorney recommends this Option.
PLUS Option Features
The PLUS Option is designed in such a way that once the Plan is
opened, the borrower does not need to sign for each secured advance.
This streamlined process is different than what your members, staff and
attorney may be accustomed to because it is more common to require a
signature on the Security Agreement each time the borrower obtains a
secured advance.
The advantages of this Option are obvious,
• First, once a borrower signs the agreement, the borrower never has
to provide you with another signature.
• Second, because you do not need a borrower’s signature on a
Voucher or endorsement language on the back of a proceeds check,
you can deposit the proceeds directly into the borrower’s share or
share draft account.
The PLUS Option works well in the following circumstances:
• You have many members that live in different states or far away
from the credit union.
• Your members have difficulty getting to the credit union to sign
documents.
• Your members like to access services remotely (i.e. via the Internet,
mail, home banking software, etc.).
• Your members like having the advanced funds deposited into a
share/share draft account rather than receiving a check that needs
to be endorsed.
• The credit union, in consultation with its attorney, has determined
that it is not necessary to have a signature for each secured advance.
Open-End Planning Guide — Credit Agreement Analysis 4-5
While we are aware of credit unions that have used the PLUS Option
very successfully, some credit unions are hesitant about using a combined
Credit and Security Agreement. While the Truth in Lending regulations
do not require any certain format or any signatures on documents, the
law of contracts and collections does govern this area.
Since we want your documents to be enforceable in the event that you
have to start a collection action or repossession against a borrower, you
should always make sure that a local judge will enforce the contract.
Courts and judges vary greatly by location.
Your attorney and/or collections officer will be most familiar with those
local practices. It is imperative that you consult with your attorney or
other persons who handle collections for the credit union to obtain their
opinion on the PLUS Option.
Additional Signatures Required
While the PLUS Option is designed to obtain signatures only at the time
the Plan is opened, there are situations in which you will need to obtain
other signatures even when using the PLUS Option. For example:
• If the borrower is in a state in which a copy of a Security
Agreement has to be filed, you will need to use a Security
Agreement which all owners of the collateral will have to sign.
• If collateral offered as security for the loan advance is owned by
persons other than the borrower who signed the Credit and Security
Agreement, the non-borrowing owner of collateral will need to sign
a Security Agreement. To obtain a valid security interest in collateral,
each owner of collateral must sign the Security Agreement.
Therefore, even with the PLUS Option, it will be necessary for you to
order a small supply of the Voucher/Security Agreement or separate
Security Agreement to use in the above described situations.
Credit Agreement Analysis Questions
INSTRUCTIONS FOR SECTION 1 – Choose a Plan Option
A removable Credit Agreement Analysis document is available for your
use on page 6-3.
Complete Section 1 to choose a Plan Option. The Plan Option will be
either the “Basic” or “PLUS” Option. The Basic Option contains only
the Credit Agreement. The PLUS Option contains a Permanent Security
Agreement integrated into the Credit Agreement. There are several factors
Open-End Planning Guide — Credit Agreement Analysis 4-6
that affect whether or not the PLUS Option will suit your needs. Below
is an explanation of the significance of each question in Section 1 of the
Credit Agreement Analysis:
1.Do you do secured lending under your Open-End Plan?
Your answer will affect whether or not you want to use the PLUS Option.
Some credit unions have only line of credit and/or overdraft protection
subaccounts under their Open-End Plan. Others do both secured and
unsecured lending under their Open-End Plan. If you only provide
subaccounts under your Open-End Plan that are not secured such as a
line of credit, you will not need the PLUS Option. You will recall from
earlier chapters of this guide that the main benefit of the PLUS Option
is for those credit unions that do secured lending under their Open-End
Plan. The PLUS Option integrates a Permanent Security Agreement into
the Credit Agreement, and as a result, the borrower agrees to both when
the open-end plan is established. Once the plan is opened, you do not
need a signature on a Security Agreement for secured advances. You
simply use the Disbursement Receipt to document the secured advance.
If you do not do secured lending under your Open-End Plan, you can
proceed to Section 2 to select a Credit Agreement format.
2.Does your state require a signed copy of the Security Agreement when
you file a lien? Filing states include: AR, CO, DC, LA, NE, OH, SD, WY.
In some states, the governmental agency which records the lien on
collateral securing a loan requires that you file a signed copy of the
Security Agreement to obtain the lien (we have referred to these states
as “filing states” throughout this guide). This means that every time
you make a secured advance under your Open-End Plan in any of
these states, you must obtain the borrower’s signature on the Security
Agreement in order to file your lien on the collateral.
The PLUS Option is designed around the concept that the borrower signs
the Security Agreement at the time the Open-end Plan is established, which
allows you to document secured advances in the future without a signature.
As a result, if your credit union is in a filing state, or you do a majority of
your lending in a filing state, the PLUS Option might not work for you
and you should order the Basic Option. Proceed to Section 2 to select a
Credit Agreement format.
If your credit union is located in a filing state but you do at least half
of your lending in a non-filing state (i.e. a state that does not require
a signed copy of the Security Agreement to record the lien), you
may consider ordering the PLUS Option. You would then use the
Open-End Planning Guide — Credit Agreement Analysis 4-7
Disbursement Receipt to document advances in the non-filing states and
the Advance Voucher and Security Agreement to document advances
made in the filing states. Please choose the Basic or PLUS Option and
proceed to Section 2 to select a Credit Agreement format.
If you are located in or lend primarily in a non-filing state, proceed to
question #3.
3.Your choice of the Basic or PLUS Option is now based solely on your
business and operational needs. The main consideration is do you want
the Security Agreement and Credit Agreement combined in order to get
the borrower’s agreement to both at the time the plan is established,
thus allowing you to deposit advances directly into the borrower’s
account with­out additional signatures?
There are many factors to consider when making this decision.
A. Do you want a signature on file for each advance, secured or
unsecured? If yes, you will want to go with the Basic Option.
B. Do the courts in your area tend to approach lending more
conservatively? For example, do the courts insist on signatures
on all documentation? Would the Permanent Security Agreement
concept be understood in the local courts? You should consult with
your attorney on this issue to determine how you would like to
proceed.
C. Are your files full of documentation? Would you like to streamline
the disbursement process in a way that no longer requires you to
wait to get a borrower’s signature before disbursing the advance?
Are your borrowers asking for quick turn-around times for
disbursement? Are many of your members located in areas that
make it difficult for them to come into the credit union to sign
documents?
As you consider these factors, decide what is most important to your
credit union as well as what will support your future lending needs.
Based on this, choose either the PLUS or Basic Option and proceed to
Section 2 to select a Credit Agreement format.
Open-End Planning Guide — Credit Agreement Analysis 4-8
Section 2 – Choose a Credit Agreement Format
General Information
After you determine whether to use the Basic or PLUS Option, you will need
to decide which of the three (3) Credit Agreement formats will be best for
your credit union and members. Each of the three (3) LOANLINER® Credit
Agreement formats are available with the Basic Option or PLUS Option.
All three (3) of the formats have features that appeal to different credit
unions. For example:
• If you want the borrower to have a signed copy of the agreement,
you should choose the Packaged Agreement format.
• If you want the credit union to have a copy of a signed Credit
Agreement in the borrower’s file, you should choose either the
Packaged Agreement format or the Flexible Agreement format.
• If you want to allow the borrowers to apply for and agree to the
terms of a credit card as well as the LOANLINER® Plan, you
should choose the Simplified Agreement format.
Simplified Agreement Format
The Simplified Agreement format combines an Express Application,
the Plan signatures, and the payment protection election into one
(1) document that remains on file in the credit union. The borrower
completes this combined application and plan signatures document to
apply for and agree to the Open-End plan.
In the paper format, the Borrower Copy of the Credit Agreement, Billing
Rights Notice, and Payment Protection is a folded 8½” x 3½” brochure.
The electronic version is 8½” x 11” in size. There are no signatures on the
Borrower Copy of the Credit Agreement.
The Credit Union Copy, which is called the Open-End Application and
Plan Signatures document, includes:
• An express credit application for the LOANLINER® Plan and a
credit card election.
• Signatures agreeing to the terms of the LOANLINER® Agreement and
credit card agreement (if credit cards are included on the application).
• An area for instructions or other important information.
• A payment protection enrollment for the LOANLINER® Plan.
This format differs from the other Credit Agreement formats because the
credit union does not keep a copy of the Credit Agreement language in
Open-End Planning Guide — Credit Agreement Analysis 4-9
the borrower’s file. Instead, the credit union keeps a master copy of the
Agreement on file in the credit union (for example, with the compliance
officer). The credit union relies on the borrower’s signature on the Open-End
Application and Plan Signatures document (which has signature language
that refers to the Credit Agreement) as the borrower’s promise to repay.
For mail transactions, the credit union can mail the Borrower Copy of the
Credit Agreement, the Addendum, and the Open-End Application and
Plan Signatures document to the borrower. The borrower keeps his/her
copy of the Agreement and Addendum, signs the Open-End Application
and Plan Signatures document and returns it to the credit union for the
credit union file.
Flexible Agreement Format
You may use any application that you wish with the Flexible Agreement
format. This format uses the same Borrower Copy of the Credit
Agreement as is used in the Simplified Agreement format.
The Credit Union Copy, which is called the Open-End Plan Signatures
document, includes the signatures for the LOANLINER® Plan, the
payment protection election for the account, and a copy of the Credit
Agreement. In this format, the credit union retains the signed copy of the
Credit Agreement in the borrower’s file.
For mail transactions, the credit union can mail the Borrower Copy
of the Credit Agreement, the Addendum, and the Open-End Plan
Signatures document to the borrower. The borrower keeps his/her copy
of the Agreement and Addendum, signs the Open-End Plan Signatures
document and returns it to the credit union for the credit union file.
Packaged Agreement Format
You may use any application you wish with the Packaged Agreement
format. This document includes both the Borrower and Credit Union
Copy of the LOANLINER® Credit Agreement, thus the name “Packaged.”
The borrower signs agreeing to the terms of the Agreement on this
document.
Both the credit union and borrower have an identical copy of the
signatures and the Credit Agreement. Payment protection election and
Billing Rights Notice are also part of the document.
The Packaged Agreement format is considered the most conservative of the
formats. If you want the credit union and the borrower to have duplicate
copies of Agreements and signatures, this format will work well for you.
Open-End Planning Guide — Credit Agreement Analysis 4-10
For mail transactions, the credit union can mail the Packaged Agreement
document and the Addendum to the borrower. The borrower signs on the
first copy of the document, tears off the top copy and returns it to the credit
union for the credit union file. The borrower keeps the remaining two (2)
copies of the document and the Addendum for their file.
Credit Agreement Analysis Questions
INSTRUCTIONS FOR SECTION 2 – Choose a Credit Agreement Format
This section of the Credit Agreement Analysis requires you to consider
your operations as well as what factors are most important to you in
selecting a lending format for your credit union. As you review and
answer the questions, keep in mind the credit union’s goals for the future.
For example, is your credit union in the process of establishing a Web
site on the Internet or will you be doing so in the near future? Do you
already have a variety of application methods or are you planning on
implementing several (such as a loan by phone system, call center, etc.) in
the near future? The answers to these questions will affect which Credit
Agreement format you choose.
After you answer each of the five (5) questions, rank the questions in
order of importance to your credit union. Based on your answers and the
order in which you rank their level of importance, you will find that one
(1) of the Credit Agreement formats will meet your needs better than the
other. Once you have chosen a Credit Agreement format, you can then
proceed with completing the Consumer Open-End Order Form to place
your order. Below is an explanation of the significance of each question in
Section 2 of the Credit Agreement Analysis.
1.Is it important to have a separate application, such as an
electronically-generated application, applications by phone system,
Internet application, etc.?
If you have a variety of application methods members can use to request
credit, consider ordering the Flexible or Packaged Agreement format. Both
of these formats are designed to be used with a variety of application
methods. The intent is that once the borrower applies for credit using any
one of several methods and you approve him/her for the credit extension,
you then have the borrower sign the Open-End Credit Agreement (either
Flexible or Packaged) in order to establish the Open-End Plan.
The Flexible and Packaged formats allow you to use any length application
you wish, whereas the Simplified format contains an integrated Express
Application which obtains a modest amount of information from the
borrower and relies on the credit report for detailed debt information.
Open-End Planning Guide — Credit Agreement Analysis 4-11
2.Is it important to have the member apply for the Plan and agree to its
terms and conditions in one step, thus streamlining your process for
opening accounts?
This question naturally follows question number 1 regarding the separate
application. The Simplified Agreement format contains an Express
Application integrated into the Plan Signatures document. When the
borrower signs the Plan Signatures document of this format, he/she agrees:
A. That the information on the Express Application is correct.
B. To be bound by the terms and conditions of the Credit Agreement.
C. That use of the credit card constitutes acceptance to the terms and
conditions of the credit card agreement (if you select the credit card
option for this format).
D. To give a security interest in shares to secure the LOANLINER® Plan
and the credit card agreement (if using the credit card option for
this format).
The Simplified Agreement format will appeal to those credit unions that
want to reduce the number of signatures a borrower is required to make
when applying for credit. It will also appeal to those credit unions that
rely on a credit report for debt information rather than relying on the
borrower to fill out a full-length application.
If having a simplified process for opening an account is important, you
will want to consider ordering the Simplified Agreement format.
3. Is it important to have one (1) document in which both the Credit
Union Copy and Borrower Copy of the plan documents are included?
This question is intended to focus on your operations and service. Do
your members currently complain about separate pieces of paper that are
shuffled around during account opening? Would you like to have a multipart document that is easy to mail, easy to use and is packaged together
so your employees do not have to think about which document to pull
out for the borrower to sign?
The Packaged Agreement format was designed with these questions in
mind. The Credit Union Copy and Borrower Copy in paper format are glued
together in a 3-part, carbonless document that folds into a compact brochure.
Instead of having to deal with two (2) separate pieces of paper as with the
Simplified or Flexible formats, your employees have one (1) folded brochure
to handle. The borrower signs on the top copy which you retain for your files
after separating it from the brochure. The borrower folds up the remaining
copies into the compact brochure and has a neat package to take home.
If having a packaged document set is important to your credit union,
consider ordering the Packaged Agreement format.
Open-End Planning Guide — Credit Agreement Analysis 4-12
4.For documentation purposes, is it important to you to have both the
credit union and borrower receive an exact duplicate of all signatures,
the Credit Agreement, and the Payment Protection application?
This question is intended to focus on what you need to retain in your files
and what you want your borrowers to retain for their files. The Packaged
Agreement format in paper is a 3-part carbonless brochure design, which
allows the borrower’s signature and Payment Protection election on the
top (credit union) copy to transfer through to the second (borrower) copy
of the document. Both the Credit Union Copy and Borrower Copy are
exactly alike, therefore, both retain the same information in their files.
With the Simplified and Flexible formats, only the credit union retains a
copy of the signatures for the Open-End Plan and the Payment Protection
election. The borrower’s copy does not contain a duplicate of the
signatures, though there is a space for the borrower to record the Payment
Protection election made on the Credit Union Copy.
If your credit union feels it is important for both parties to have a copy of
the same information, choose the Packaged Agreement format.
5.Is it important to have the ability to order the Credit Union Copy and
Borrower Copy of the plan documents separately so that you can, for
example, electronically generate one of the pieces or give a copy to each
borrower under a joint open-end plan?
Both the Simplified and Flexible Agreement formats are designed with
the Credit Union and Borrower Copies as separate documents. This
means you can order each piece separately.
This gives you the ability to electronically generate the Credit Union Copy
(which contains the information that will vary from borrower to borrower)
and give the borrower a pre-printed Borrower Copy, which contains
standard language that remains the same from borrower to borrower.
Alternatively, you may feel it is important to give joint borrowers their own
copy of the Credit Agreement. While the Truth in Lending regulations do
not require that joint borrowers each get a copy, some credit unions feel
more comfortable providing both borrowers with a copy, especially if the
borrowers do not share common records (ex. parent and child, siblings, etc.).
The Packaged Agreement format may not appeal to credit unions who like
the “separate pieces” approach because both the Credit Union Copy and
Borrower Copy in paper format are glued together into one (1) multi-part
document. Alternatively, you may find the Packaged format appealing if
using separate pieces of paper would make your process less efficient. For
example, if your credit union mails plan opening documents after the initial
application has been taken and credit worthiness is established, it would be
Open-End Planning Guide — Credit Agreement Analysis 4-13
more efficient to place a Packaged Credit Agreement into an envelope with
an Addendum for mailing than to use two (2) separate pieces.
If your credit union finds it appealing to have separate pieces for the
Credit Union Copy and Borrower Copy of the plan documentation,
consider ordering the Simplified or Flexible Agreement format. If it is
more appealing for you to have the copies packaged together for easier
handling, consider ordering the Packaged Agreement format.
Now that you have answered the five (5) questions, rank the features
described in each question in order of importance to your credit union.
Rank the most important feature as #1, the second most important as #2,
etc. Take a look at your ranking and then choose the format that provides
you with the feature or features most important to you.
If you are having trouble selecting a format, or you find your answers
and ranking have pointed you in the direction of two (2) different
Agreements, please call either number for assistance:
• Your local CUNA Mutual representative at:
1-800-356-2644
• The LOANLINER® department at:
1-800-356-5012
Open-End Planning Guide — Credit Agreement Analysis 4-14
CHAPTER 5
ADDITIONAL LOANLINER® DOCUMENTS
Now that you have selected which Plan Option and Credit Agreement
format you are going to use for your Open-End Credit Plan, review the
descriptions of the documents in this chapter and decide what additional
documents you need to properly open and administer Open-End plans
for your members.
Remember that the advantage of Open-End credit is that the borrower
only has to receive the Basic or PLUS Credit Agreement at the time that
the Plan is opened. Once the Plan is opened, the borrower does not have
to sign or receive the Basic or PLUS Credit Agreement again.
Special State Documents
Laws that govern consumer lending vary by state. State laws frequently
vary regarding:
• When a borrower is considered in default.
• The credit union’s rights upon default.
• When and how the terms on an Open-End Plan can be changed.
We recommend that you use lending documents for the state where the
borrower lives.
For purposes of the Credit Agreement, we have combined those
requirements into a single multi-state Credit Agreement. You may use the
Basic Option of any Credit Agreement format in any state in which you
have borrowers. However, if you are lending in Pennsylvania or Virginia
you need to order special documents due to format considerations.
For purposes of the Security Agreement, we have combined most of those
requirements into a single multi-state Security Agreement.
For purposes of miscellaneous support documents, we have tried to
integrate as many state-specific requirements as possible into our support
documents.
California
California has a state-specific Notice to Co-Signer which is given to a
guarantor when the Guaranty Agreement is signed.
Open-End Planning Guide — Additional LOANLINER® Documents 5-1
Florida
Florida has a state-specific Voucher which uses the multi-state Security
Agreement language but is formatted so that the signature area is found
only on the Security Agreement.
Iowa
Iowa has a state-specific Notice to Co-Signer which is given to a guarantor
when the Guaranty Agreement is signed.
Louisiana
Louisiana law requires very specific language in the Security Agreement.
You may order the PLUS Credit Agreement format to use in Louisiana,
but you would also need a separate Security Instrument for secured
advances. Louisiana also has a Pre-Approved Payment Order with statespecific language in the Security Agreement.
Maine
Maine has a state-specific Guaranty Agreement which must be used to
obligate a guarantor who is guaranteeing a debt. The Maine Guaranty
Agreement is used with the multi-state Notice to Co-Signer.
New York
New York has a state-specific Notice to Co-Signer which is given to a
guarantor when the Guaranty Agreement is signed.
Pennsylvania
If you are using the Basic Option for the Flexible Agreement or Simplified
Agreement format and are a Pennsylvania credit union, you must use
the Pennsylvania version of the Borrower’s Copy of the Credit Agreement.
Pennsylvania uses the multi-state Credit Agreement language, however,
due to the length of the Pennsylvania payment protection language, the
format of the Borrower’s Copy is slightly different.
Virginia
Virginia law prohibits placement of credit insurance documents on
a lending document. If you are a Virginia credit union, you should
order the Virginia version of the Credit Agreement and accompanying
documents. The language in the Credit Agreement is multi-state but does
not include the insurance enrollment or certificate.
Wisconsin
Wisconsin has a state-specific Explanation of Personal Obligation which
must be given to a guarantor when the Guaranty Agreement is signed.
Open-End Planning Guide — Additional LOANLINER® Documents 5-2
Addendum
The language that is included in the Basic and PLUS Credit Agreement
is standard language used by all LOANLINER® credit unions. However
the terms of credit vary from credit union to credit union. For example,
interest rates, types of credit offered, fees, and other information about
plans vary considerably among credit unions. An Addendum is used
to gather information on all the features under your Open Plan. Part of
your Addendum is a table called the Account Opening Disclosure which
is required per Regulation Z 226.6(b). To meet the Regulation Z account
opening disclosure requirement, the Account Opening Disclosure needs
to be added into the Addendum. We offer an Addendum Tool, that
incorporates the Account Opening Disclosure table into our Addendum,
accommodating your credit unions’ subaccount offerings, along with
disclosure of all other terms that are required by either the Truth in
Lending Act or contract law.
The Addendum details features unique to your Open-End plan, which means
that you must update your Addendum with any changes to your plan. The
Addendum is provided at plan opening.
The Addendum includes the following information if applicable:
• description of all subaccounts,
• approximate repayment terms
• daily periodic rates
• annual percentage rates
• variable rate disclosures
• collection costs
• annual and maintenance fees
• transaction fees
• penalty fee (i.e. late charges)
• other information which you may want to include as part of the
terms of the Credit Agreement
The Addendum is a separate document which is part of your Plan and is
tied together with language found in the Credit Agreement.
You can order our Addendum Tool so that you can create your Credit
Union’s Addendum. Chapter 6 contains details on how to build your
Addendum. The tool will allow you to update your Addendum whenever
necessary per your credit unions lending practices. Our LOANLINER
compliance staff can assist you with questions that pertain to your
Addendum.
Open-End Planning Guide — Additional LOANLINER® Documents 5-3
By using our Addendum Tool, will be able to produce a compliant
Addendum for use with your Open-End plans.
Applications
One of the advantages of Open-End lending is that you only need to take
an application at the time that the plan is opened. If you take an application
each time the member wants to borrow more money, the credit appears to
be Closed-End. The need for a new application indicates that you do not
reasonably contemplate repeated transactions, which is one of the basic
requirements of Open-End credit. The practice of taking an application for
each advance is not allowed for Open-End lending, per Regulation Z.
You are establishing the borrower’s creditworthiness at the time of
application, so how much information you want to collect on the original
application is up to you. Remember, that in addition to using the borrower
data from the application to make an informed decision when the
Plan is opened, this data will also be used as a baseline to verify future
creditworthiness of a member. Per Regulation Z, it is not allowable to take an
application at the time of subsequent advances.
The LOANLINER® Program offers a full application on which applicants,
co-applicants, and guarantors are asked to provide information about
employment, income, references, debts, and assets. Notices required by
Wisconsin and Ohio are also included.
If you wish to use a shorter application, you can use an Express
Application. This application does not include questions regarding the
member’s debts as it is expected that the credit union will use a credit
report with this application to obtain debt information.
You can use any of the above applications with either the Flexible or
Packaged format. You may also use your own application, so long as it
meets all of the requirements of the Equal Credit Opportunity Act, with
either the Flexible or Packaged format.
An advantage of using the Simplified Agreement format is that an
Express Application is built right into the document which includes
the signatures for the Plan. That application allows you to gather
general information about the member, information about housing debt,
employment, income, and one (1) reference.
It is expected that all LOANLINER® applications will be used along
with a full credit report so that sufficient information is gathered at Plan
opening to establish member creditworthiness.
Open-End Planning Guide — Additional LOANLINER® Documents 5-4
Applications With Credit Card Option
Many credit unions offer credit cards to their members in addition to the
LOANLINER® Open-End Plan. LOANLINER® can create the credit card
agreement and Truth in Lending disclosures that must be given to the
member before the card is used. The LOANLINER® Program will help you
cross-sell credit cards, obtain the necessary signatures for the Credit Card
Agreement and produce the Credit Card Agreement and Credit Card
Account Opening Disclosure.
Some credit unions use their own application for credit cards. The
LOANLINER® Program provides applications which can be used to elect
a credit card. The Truth in Lending Act and Regulation Z require that
your member elect a credit card either in writing or orally. You cannot
give a credit card to a member without his or her request. By using an
application on which the member can specifically indicate a request
for the credit card, you can easily comply with this Truth in Lending
requirement.
You may order any of the LOANLINER® applications (including the
application built into the Simplified Agreement format) with or without a
credit card election.
The LOANLINER® program also provides a credit card only application
that can be used only for marketing purposes. There is not an offer for a
LOANLINER® Open-End Plan on this application.
If you are using an application other than a LOANLINER® application,
be sure that you have a way for the member to indicate a request for
the credit card. If you rely on an oral request, you should document in
writing that an oral request was made.
Open-End Planning Guide — Additional LOANLINER® Documents 5-5
Credit Card Disclosures Required for Applications &
Solicitations
Whenever you provide a “take one” credit card application, mailed
applications or other applications that members receive without
specifically asking the card issuer for them, you must give certain
disclosures about the terms of the credit card. Take-one credit card
applications are those that the general public may take from a credit
union countertop display, for example, or at a sponsor’s office, from a
publication, etc. They are used for solicitation of a credit card.
A table containing disclosures is referred to as the Application and
Solicitation Disclosure when you are using the credit card application
for marketing purposes. The Application and Solicitation Disclosure can
be given with the application, and the application must include a clear
and conspicuous reference to where the disclosure is located, “A table
that includes the APRs and other required cost disclosures for credit
applications is on a separate document provided with this application.”
If you are not providing the Application and Solicitation Disclosure
the application must include a cost statement such as “There are costs
associated with the use of a credit card. To obtain information about
these costs, call us at the toll-free number or address stated above.” A
statement to call the credit union collect if an 800 number is not available
is permitted.
A Credit Card Account Opening Disclosure is used at account opening
when you provide the Credit Card Agreement and Credit Card Account
Opening Disclosure, along with the actual credit card.
Required credit card disclosure includes:
• APR for purchase must be listed in at least 16-point type
(such as this); all other rates are 10 point (cash advance,
balance transfer, introductory).
• Any penalty APR must appear in the “account opening disclosure,”
along with the explanation of any events that will cause an increase
in the rate, plus state how long the increased rate is in effect.
• Annual fees, set-up/maintenance fees, along with penalty fees
must be disclosed in the account opening table.
Open-End Planning Guide — Additional LOANLINER® Documents 5-6
Agreement Signatures
Once you have approved the borrower for a credit card, you will want
the borrower to agree to the terms of the Credit Card Agreement. You can
accomplish this by telling the borrower that use of the credit card will
mean acceptance of the terms and conditions of the Agreement.
If you use an application with a credit card option, language will be
included in the signature section which states:
“You understand that use of your credit card will constitute
acknowledgement of receipt and agreement to the terms of the credit
card agreement and disclosures.”
Remember that you will need to provide the Credit Card Agreement and
Credit Card Account Opening Disclosures prior to the first transaction
under the credit card plan. The Agreement and Disclosure can be sent
with the credit card.
Security Interest in Shares
The Truth in Lending Act states that you cannot take a security interest
in the borrower’s shares and deposits to secure a credit card unless
the owner of those share and deposit accounts gives you a consensual
security interest in the shares and deposits. That means that the owner of
the shares and deposits has to understand and agree that they are giving
their shares as security and the credit union may take those shares if the
borrower is in default on the credit card account. This is different than the
statutory lien or right of setoff that the credit union normally has in shares.
The LOANLINER® Program makes it easy to obtain this consensual
security interest in shares. In the signature box of the LOANLINER®
Applications or Simplified Agreement format with credit card option, the
following language appears in bold print.
“You grant us a security interest in all individual and joint share
and/or deposit accounts you have with us now and in the future
to secure your credit card account. When you are in default, you
authorize us to apply the balance in these accounts to any amounts
due. Shares and deposits in an Individual Retirement Account, and
any other account that would lose special tax treatment under state
or federal law if given as security are not subject to the security
interest you have given in your shares and deposits.”
Open-End Planning Guide — Additional LOANLINER® Documents 5-7
By signing the signature section, the borrower is giving a consensual
security interest in the shares and the Truth in Lending requirements
are satisfied. If you are not using a LOANLINER® Application or the
Simplified Agreement format with credit card option, you should make
sure that you are obtaining the consensual security interest elsewhere if
you intend to take shares to secure the credit card account.
ATM/Debit Cards
Some credit unions offer access to the LOANLINER® Open-End Plan by
an ATM/debit card. For example, your members may have an overdraft
subaccount under the LOANLINER® Plan. If they can overdraw a
share draft account by using an ATM/debit card, which creates an
advance from the Open-End Plan to cover the overdraft, that card is
considered a “credit card” under Regulation Z. The prohibition against
unsolicited credit cards described above also applies to these types of
cards if they can be used to access credit (whether direct or indirect). The
LOANLINER® documents have been designed to include the request for
this type of access so that you meet the Regulation Z requirement. This
is accomplished on the application when the member applies for the
LOANLINER® Plan, as shown below:
Check below to indicate the type of account(s) and type of credit for which you are applying.
Married Applicants may apply for a separate account.
p LOANLINER® Account/Loan: M Individual M Joint
(Including ATM/Debit Card Access to the Account if Available)
Open-End Planning Guide — Additional LOANLINER® Documents 5-8
Vouchers and Disbursement Receipts
Vouchers and Disbursement Receipts are used once a borrower has
established a plan and requests a subsequent advance. This is one of the
features of Open-End lending that makes it convenient for both you and
the borrower. When the borrower wants another advance he/she can
request that advance in person, over the telephone, via the Internet, by fax
or any other access method you permit. However, you need to document
certain information about each advance.
Vouchers
Vouchers have been designed to be used with the Basic Option. If your
credit union is using the PLUS Option you only need to order Vouchers if
you lend in states in which you need to file a signed copy of the Security
Agree­ment to perfect your security interest in the collateral.
Remember that there are special Vouchers for Florida, Louisiana and
Wisconsin.
Almost all of the Vouchers come in a format which provides at least one
copy for the credit union and one for the borrower. All Vouchers contain
the two standard sections listed below.
Voucher Section
Description
Borrower
Information
This section allows you to collect updated information
about the borrower (and joint borrower, if applicable)
such as name and address. It also collects the amount
requested, purpose of the advance, the date, how he/
she would like the funds disbursed and how he/she
would like to repay the advance.
Repayment
Terms
When you approve an advance, you need to notify the
borrower of his/her new payment and payment due
date. The repayment term section allows you to define
the specific repayment terms that apply to the advance.
Open-End Planning Guide — Additional LOANLINER® Documents 5-9
Open-End Voucher with Security Agreement
Some of the Vouchers contain a Security Agreement which would include
the two standard sections described above, plus the two sections below:
Voucher Section
Description
Security
Offered
This section allows identification of the collateral being
offered as security for the advance.
If the borrower is offering collateral (property) to
secure the advance, the borrower must sign a Security
Agreement. The LOANLINER® Program offers a
multi-state Security Agreement.
The multi-state Security Agreement can be used for
borrowers in all states except Louisiana. In Louisiana,
the laws about securing and repossessing collateral
are different from other states. If you offer secured
advances to borrowers in Louisiana you need to order
the Voucher with Security Agreement for Louisiana.
A Florida Voucher is also available. It uses the multistate Security Agreement language but has been
formatted so that the signature area is found only on
the Security Agreement.
Open-End Planning Guide — Additional LOANLINER® Documents 5-10
Signatures
The signature section outlines the methods by which
the borrower can agree to the terms and conditions
of the advance, as well as the items the borrower is
agreeing to when:
• Signing the Voucher
• Signing the Endorsement language on the back of
the check.
• Using the funds deposited into his/her share
account.
Some credit unions require borrowers to sign for each
advance. There is no Truth in Lending requirement
that the Voucher be signed.
In order to obtain an enforceable security interest in
the collateral, you also need a signature agreeing to the
terms of the Security Agreement. This signature can be
obtained either on the Voucher or on the Endorsement
language on the back of the advance proceeds check.
Of course, if your state requires the filing of a signed
Security Agreement to perfect a lien on the collateral,
you need to get the Voucher itself signed.
Open-End Planning Guide — Additional LOANLINER® Documents 5-11
Subsequent
Election for
Voluntary
Payment
Protection
Some vouchers allow the borrower to elect payment
protection on the advance. This section is important if
the borrower originally declined payment protection
when the Open-End plan was established or if the
borrower waived the coverage on a previous advance.
Your specific credit union coverages are imprinted in
this section. You must complete the unit cost (ex. $0.XX
per $100 borrowed) before giving the Voucher to
the borrower. The borrower can then indicate which
coverages he/she would like and, if this is a joint
account, which borrower is covered by each coverage
selected. Once coverage is selected, be sure your system
is coded properly to show which coverages apply.
If you are using this section of the Voucher to add
payment protection coverage on an advance 30 days
after the date of the advance, you will need to
complete an Evidence of Insurability. Please contact
your CUNA Mutual representative for information
about this document.
Advance Request
This document can be used with either a Disbursement Receipt or an
Open-End Voucher and Security Agreement. The Advance Request
documents the borrower’s request for an advance.
Open-End Voucher (Short Version)
This form is used to document advances that do not require collateral,
such as line of credit, signature, or overdraft protection. Since the borrower
is not offering any additional collateral to secure an advance taken under
these subaccounts, you do not need to use a Security Agreement.
Open-End Planning Guide — Additional LOANLINER® Documents 5-12
Disbursement Receipt (Used with PLUS Option Only)
The Disbursement Receipt can be used for both secured and unsecured
advances. It contains an abbreviated Borrower Information section, and
the Repayment Terms and Security Offered sections. The Receipt also has
special language that reminds the borrower of his/her obligations under
the PLUS Option Credit Agreement. After you have approved the advance,
you can either mail a check to the borrower or deposit funds directly into
the borrower’s share or share draft account. The Disbursement Receipt
serves as a paper trail and provides a way to document the collateral
description for secured advances. The Receipt should be given to the
borrower so that he/she knows the payment terms for the advance.
Pre-Approved Payment Order
This document allows the credit union to pre-approve a borrower for an
advance under an established Open-End Plan. It has been designed to help
you compete with dealer financing and other indirect lending programs.
You can pre-approve the borrower up to a certain dollar amount. After
being approved, the borrower takes the Pre-Approved Payment Order to
a car dealer. The borrower negotiates the best deal, and presents the PreApproved Payment Order to the dealer as payment for the car. The dealer
is responsible for following all the instructions on the payment order, such
as presenting the credit union with a copy of the Purchase Agreement and
recording a lien in favor of the credit union. If the dealer complies with
all the requirements of the payment order, then the credit union pays the
order. The dealer must present the order directly to the credit union for
payment. It cannot be deposited in the dealer’s financial institution.
This multi-part document consists of the following:
• Pre-Approved Payment Order Agreement
(this supplements the LOANLINER® Credit Agreement)
• Security Agreement
• Instructions to the borrower and to the dealer
• Pre-Approved Payment Order (non-negotiable)
The Pre-Approved Payment Order can be used with any of the Plan
Options and Credit Agreement formats. Because it includes the multi-state
Security Agreement, it cannot be used in Wisconsin or Louisiana. A special
Pre-Approved Payment Order has been created for use in Louisiana.
Open-End Planning Guide — Additional LOANLINER® Documents 5-13
Miscellaneous Documents
You have now chosen all the documents that are necessary to establish
an Open-End Plan for a member and to document advances. In addition
to the base documents, the LOANLINER® Program also offers many
miscellaneous documents that are used in certain situations. You should
consider ordering these documents as well. A brief explanation of each
document follows.
Adverse Action
The Equal Credit Opportunity Act and Regulation B require that when
you deny credit you send an Adverse Action Notice to the applicant. The
notice must include a statement of the reasons why you denied the credit.
If you rely on information in a consumer (credit) report to deny credit or
other credit union services, the Fair Credit Reporting Act requires that
you give notice to the applicant.
The LOANLINER® Adverse Action combines the notices required by the
Equal Credit Opportunity Act and the Fair Credit Reporting Act in one (1)
document.
Guaranty Agreement
The Guaranty Agreement can be used for both Open-End and Closed-End
lending. It is used as the written legal contract between the credit union
and the guarantor. A guarantor does not sign the Credit Agreement or the
note but rather signs a separate document, the Guaranty Agreement. A
guarantor is defined as “A person who agrees to pay the debt upon default of
the member.” A guarantor is considered secondarily liable on the debt and
does not receive benefit from or use of the loan proceeds.
The Guaranty Agreement is designed to comply with the laws of most
states. However, it is your responsibility to have your attorney review
the Guaranty Agreement for compliance with state law. If the document
cannot be used in a particular state, you may want to have your attorney
draft a document or obtain one locally.
The Guaranty Agreement is offered either as a separate document or
combined with the Notice to Co-Signer described below. Only federally
chartered credit unions can use the combined document.
Open-End Planning Guide — Additional LOANLINER® Documents 5-14
Notice to Co-Signer
Both state and federally chartered credit unions are subject to the
Notice to Co-Signer regulation. The Federal Trade Commission (FTC)
regulations apply to state chartered credit unions. The National Credit
Union Administration (NCUA) regulations apply to federally chartered
credit unions. The notice language is the same for both state and federally
chartered credit unions. The difference is that the notice for federally
chartered credit unions does not have to be a separate document. We have
included it with the Guaranty Agreement for those federally chartered
credit unions that would like to use a combined document.
Some states have laws that are similar to the federal law. If you have
borrowers in those states you will want to order the notices that are
specially designed for those states.
Keep in mind that this notice is not the document that obligates the
guarantor. You still need to use a Guaranty Agreement to obligate the
guarantor.
Subsequent Action
This is a multi-use document that can be used for both Open-End and
Closed-End lending. It is used to document actions that occur after the
Plan is opened or the loan is made. This document allows the credit
union or the borrower to:
• Add a borrower to an Open-End plan.
• Release a co-borrower or guarantor.
• Release the credit union’s security interest in the collateral.
• Extend payments for an advance or Closed-End loan.
• Subsequently elect payment protection insurance.
• Waive a previously made insurance election.
A signature area at the bottom of the document can be used to obtain the
necessary borrower and credit union signatures for any of the above actions.
Endorsement Language
Endorsement language is used on the back of the proceeds check in lieu
of a signature on the actual documents. The borrower signs under the
Endorsement language agreeing to the terms of the Credit Agreement,
Security Agreement, repayment terms contained in the Voucher/
Disbursement Receipt and if applicable, the borrower’s payment
protection election.
Open-End Planning Guide — Additional LOANLINER® Documents 5-15
Endorsement language is used to expedite transactions completed
by phone or mail. If the borrower is in the credit union, he/she can
sign a Voucher. It is your business decision whether you want to use
Endorsement language rather than getting a signature on the Voucher.
Please consult with your attorney or the individual doing your collection
work for their advice on use of the Endorsement language.
Security Agreement
A separate Security Agreement is offered as part of the Plan. You can use
the separate Security Agreement when you are substituting collateral for
an advance. You can also use it when you need to obtain the signature of
a collateral owner who is not a borrower.
Permanent Security Agreement PLUS
As mentioned before, the PLUS Option contains a combined Credit and
Security Agreement, which is why some credit unions currently using
the Basic Option will want to switch to the PLUS Option. If you want
borrowers with existing Open-End Plans to have the benefit of the PLUS
Option, you can use the Permanent Security Agreement PLUS. When the
borrower requests a secured advance, have him/her sign the Permanent
Security Agreement PLUS which will apply to all future secured advances
under the Plan. From then on, you only need the Disbursement Receipt to
document any additional advances.
Document Folder
This folder can be used by your credit union to package any lending
and member service documents which your member is required to keep.
For example, when a borrower opens a LOANLINER® Plan, you can
present the Borrower’s Copy of the Credit Agreement, Addendum, and
Voucher or Disbursement Receipt for the first advance in the folder.
The folder creates a professional image for your credit union by providing
a way to package documents. It is especially helpful if you do remote
lending in which you mail documents to your members, because the
folder allows you to neatly combine the documents you are mailing to
the member.
You can give the folder a personal touch by having your credit union’s
name, logo and address imprinted on the front of the folder. The back can
be imprinted with your credit union’s services, hours, locations or other
information. There is room inside the folder for the credit union staff to
insert a business card.
Open-End Planning Guide — Additional LOANLINER® Documents 5-16
SECTION 6
HOW TO BUILD AN ADDENDUM
Building an Addendum
For open-end plans that are not home-secured, Regulation Z requires a
table with a summary of key terms, rates and features to be provided
before the account is opened. The “table” is referred to as the Account
Opening Disclosure table and will be incorporated into the LOANLINER
Addendum. The Addendum’s design is maintained by placing
subaccount names, approximate terms and the daily periodic rate in a
column format outside of the Account Opening Disclosure table.
Since the Account Opening Disclosure table is integrated into the
Addendum and given at the time of plan opening, the Addendum will be
the initial disclosure of your Plans subaccounts, rates and features.
The Regulation is specific about which items are required to be in the
table and which items must fall below the table. The Addendum Tool
is set up to follow these “in and out” of table rules. As an example for
variable rates, information particular to disclosing the fact that the rate
may vary along with identifying the Index or Formula used in setting the
rate must be disclosed in the table, whereas the following variable rate
items must appear below the table:
• The fact that the annual percentage rate may increase (Example: The
APR may increase.)
• How rate is determined, including the margin (Example: Your rate is
determined on prime rate plus 2%.)
• Circumstances under which the rate may increase (Example: The
rate may increase based on a change in the index as of January 20.)
• Frequency with which rate may increase (Example: The rate may
increase quarterly.)
• Any limitations on the amount the rate may change (Example: Caps.)
• Effects of the increase (Example: More payments or higher payments.)
Regulation Z also addresses finance charges and other charges. All
charges imposed as part of an open-end plan must be disclosed before
they are imposed, regardless of whether they have been considered
“finance charges” or “other charges”.
Open-End Planning Guide — How to Build an Addendum 6-1
The categories of “finance charges” and “other charges” have been
replaced with a single category of all “charges that are imposed as part
of the open-end credit plan.” Regulation Z identifies those charges that
would be considered to be imposed as part of the plan as:
a. Finance charges (i.e., interest, transaction fees etc.)
b. Charges resulting from failure to use the plan as agreed (i.e., late
payment fees, over the limit fees, fee for returned nonpayment),
except for amounts in collection after default, attorney’s fees and
post judgment interest rates permitted by law
c. Taxes by state or other governmental body (i.e., doc stamp tax
on cash advance) (Florida document stamps are accommodated on our
voucher.)
d. Charge for payment or nonpayment which affect the consumer’s
access to the plan, (i.e. fee for using the card at creditor’s
ATM to obtain a cash advance, fees to obtain additional cards,
replacement for lost/stolen card, fee to expedite delivery of cards,
application and membership fees, annual or other participation
fees in 226.4 (c)(4)), the duration of the plan, the amount of credit
extended, (i.e. fees for increasing the credit limit whether consumer
or creditor request), the timing or method of billing or payment
(i.e., fees to pay by phone or Internet) (Example: If you don’t pay your
annual or access fee then the plan would terminate.)
e. Charges for terminating a plan
f. Charges for voluntary credit insurance, debt cancellation or debt
suspension
Charges that are not imposed as part of the plan
Do not disclose:
• Charges imposed on a cardholder by an institution other than the
card issuer for the use of the other institution’s ATM in a shared or
interchange system (Example: An ATM fee charged when getting cash
by the institution that owns the ATM machine.)
• Charge for a package of services that include an open-end credit
feature, if fee is required whether or not the open-end credit
feature is included and the non-credit services are not merely
incidental to the credit feature (Example: Fee for open-end plan and
safety deposit box together.)
• Charges under 226.4(e) (Example: Lien filing fee for security interest.)
Open-End Planning Guide — How to Build an Addendum 6-2
This document along with the LOANLINER Addendum Tool will help
you prepare your Addendum. The instructions below will assist you with
collecting information for your Addendum and are setup to walk you
through the Addendum Tool screens.
Installation - Under Construction
Language that will automatically appear on your Addendum
The following language fulfills regulation requirements and will
automatically appear as specified below on your Addendum.
a.Tying the Addendum to the Credit Agreement
Language that makes it clear that the Addendum is part of the
Credit Agreement will appear at the top of your Addendum. The
language states: “This addendum is incorporated into and becomes part
of your LOANLINER® Credit Agreement. Please keep this attached to
your LOANLINER® Credit Agreement.”
b. Paying Interest
Language that discloses the fact that interest is charged from the
transaction date will appear in the Account Opening Disclosure
table. The language states: “Paying Interest: You will be charged
interest from the transaction date.”
c. Balance Computation Method
Language that explains what balance computation method is used
will appear below the Account Opening Disclosure table. The
language states: “How We Will Calculate Your Balance: We will use
a balance computation method called daily balance. See your account
agreement for more details.“
e sure to check with your Data Processor to confirm that the
B
balance computation method being used corresponds with the
“Daily Balance” method that is disclosed on the LOANLINER
Credit Agreement. If your balance computation method is different
than what is disclosed on the LOANLINER Credit Agreement,
you will need to include a paragraph below the Account Opening
Table that amends the Finance Charge paragraph of the Credit
Agreement. You will also need to adjust the “How We Will
Calculate Your Balance” statement and change the method to one
of the approved methods per Regulation Z. The regulation states:
“The following methods may be described by name. Methods that differ
Open-End Planning Guide — How to Build an Addendum 6-3
due to variations such as the allocation of payments, whether the finance
charge begins to accrue on the transaction date or the date of posting the
transaction, the existence or length of a grace period, and whether the
balance is adjusted by charges such as late payment fees, annual fees and
unpaid finance charges do no constitute separate balance computation
methods.” The acceptable methods are: Average daily balance,
Adjusted balance, Previous balance and Daily balance.
d. Billing Rights
Language applicable to the Billing Rights is found below the
Account Opening Disclosure table. The language states: “Billing
Rights: Information on your rights to dispute transactions and how to
exercise those rights is provided in your account agreement.”
Start of Addendum Screen
Addendum Date
Enter the date of the Addendum in a mm/dd/yyyy format.
The next several questions are asked so that we can program the
Addendum correctly.
a. Do you charge annual or set-up maintenance fees?
Select M Yes or M No
Examples of annual or setup maintenance fees would be a participation
fee, dormancy fee, etc.
b. Do you charge transaction fees? Select M Yes or M No
Examples of transaction fees would be a processing fee or an advance
fee, etc.
c. Do you charge penalty fees? Select M Yes or M No
Examples of penalty fees would be late charges, over the credit limit or
returned payment fees, etc.
d.Do you base your rates on approximate terms?
Select M Yes or M No
Note: If your only subaccount is a Line of Credit (LOC) or Overdraft
Protection, answer No, since you would not use approximate terms.
e. Do you offer Share Secured subaccounts? M Yes or M No
f. Do you offer Certificate Secured subacccounts? M Yes or M No
Open-End Planning Guide — How to Build an Addendum 6-4
Add Share Secured or Certificate Secured subaccount screen:
Using the Screen
•Enter the APR and daily periodic rate.
•For Share Secured, answer: Does the interest rate change on
the existing balance if the dividend rate being paid on the share
secured account changes? M Yes or M No
•For Certificate Secured, answer: Can the length of the advance be
greater than the term of the certificate? M Yes or M No
The answer to these questions allows the tool to assess if you use a
variable rate for your share secured or certificate secured subaccount.
If you have a Share Secured or Certificate Secured subaccount that is
variable, the following information will need to be collected:
• Enter the Margin as a percentage.
• Enter the APR – never less than (floor rate) as a percentage.
• Enter the APR – never greater than (ceiling rate) as a percentage.
•Select how the Effect of the increase will affect the payments –
either more payments or higher payments.
Example of Variable Rate Language for Share Secured and Certificate Secured
subaccounts:
Share Secured: The Annual Percentage Rate (APR) for Shared secured
advances will be the dividend rate being paid on the Shares (Index) on
the date of the advance plus 3.0%. The rates are subject to change on the
day the dividend rate being paid on Shares changes. The APR will never
be less than 1%. The APR will never be greater than 6%. Any increase in
the APR will result in more payments of the same amount.
Certificate Secured: The Annual Percentage Rate (APR) for Certificate
secured advances will be the dividend rate being paid on the Certificate
(Index) offered as security plus 2%. The Certificate must be renewed
until the advance is completely paid. When the Certificate is renewed,
the APR will change to reflect the new dividend rate. The APR will
never be less than 1%. The APR will never be greater than 7%. Any
increase in the APR will result in more payments of the same amount
until what you owe is repaid.
Open-End Planning Guide — How to Build an Addendum 6-5
Add Subaccount Detail Screen
Subaccounts/Features of Your Plan
In order to create a compliant Addendum, you will need to list each
subaccount that your Credit Union offers. The regulation states to
disclose the type of transactions to which the rate applies, if different
rates apply to different types of transactions, so each subaccount needs to
be disclosed.
The Addendum tool is set up to collect the subaccount name, term, APR, and
daily periodic rate for each subaccount.
Using the Screen
You will enter information per subaccount and then click the button at the
bottom of the screen that states “Click here to save subaccount information to
document”.
Clicking the button will save the information that was just entered on
the Add Subaccount Detail screen. Continue this process until you are
finished adding all of your subaccounts. Once you have finished adding all
subaccounts, you can select the button that is on the top middle of the “Add
Subaccount Details screen” entitled “Click here if you have added all your
subaccounts”.
Due to the new Regulation Z rules – the APR and other information will
appear on your Addendum within a table that is set out in a bold outline.
This bold area is called the Account Opening Disclosure table.
The regulation also states that each subaccount that has a variable rate
needs to display additional information which will be collected by the
tool at the subaccount level. Where appropriate, language for the variable
rate will appear in the Annual Percentage Rate column and additional
variable rate language will appear below the table as required by
Regulation Z.
For each periodic rate that may be used to calculate interest, the rate
expressed as a periodic rate and a corresponding Annual Percentage Rate,
is required to be disclosed.
Also the disclosure should reflect the credit terms to which the parties
are legally bound at the time of giving the disclosures. In the past, many
credit unions only had one (1) Addendum (master) and they used it for all
Open-End Planning Guide — How to Build an Addendum 6-6
members. It contained an effective date and a date of a previous Addendum
which was the “master” Addendum on hand at the credit union. With the
new regulation, you may be able to have a “master” Addendum(s) if:
a.your credit union offers one (1) rate per subaccount (and per term,
if applicable) with the same fees and features to all members, or
b.your credit union uses risk-based lending and creates an
Addendum for each tier, but within each tier, the rates, fees and
features never vary for any members within that tier. Then you
would have the concept of the “master” Addendum, but in this
case you would have a “’master” Addendum for each tier.
Be sure to address each question as it applies to the particular subaccount
you are working on.
The following information will need to be provided for each subaccount:
a. Is the subaccount rate variable?
Select either M Yes or M No
If you select No, after you have entered the subaccount name, term,
and APR, you can choose to add another Subaccount by clicking on
the “Click here to save subaccount information to document” box at
the bottom of the screen.
If you select Yes, in addition to the subaccount name, term,
and APR, an additional variable rate information screen will
automatically appear so you can enter specifics about the variable
rate features.
A Variable rate feature for open-end credit is an interest rate which
follows an index or formula. If the interest rate increases but does
not follow an index or formula, it is not a variable rate for openend credit, and a change in terms notice must be given whenever
the rate increases. However, a true variable rate does not require
a change in terms notice when the interest rate changes, because
the borrower can determine the current rate at each change date
because of the index or formula that was used for the variable rate.
b. Subaccount Name
Enter the name of the Subaccount
The name of the subaccounts should reflect the type of collateral
being offered, such as “New Vehicle”, “Motorcycles”, or “Share
Secured”. Some subaccounts are not secured by specific collateral
and are referred to as “Line of Credit” or “Overdraft Protection”.
Open-End Planning Guide — How to Build an Addendum 6-7
Review the following rules that apply to subaccounts on a
LOANLINER® Plan:
• Do not use the word “unsecured.” The plan is always secured
by the borrower’s shares and deposits and, therefore, it is never
considered to be “unsecured”.
• Mobile homes cannot be done under the plan because any open-end
plan secured by a dwelling is considered to be a home equity plan
for which additional disclosures must be given. Therefore, no mobile
home subaccount should appear on the Addendum.
• Credit cards are not part of the LOANLINER® Plan because they
usually have different disclosure and contract terms. Therefore,
a subaccount such as “VISA®” or “MasterCard®” should not be
included on the Addendum. The borrower can elect a credit card
and agree to the terms of the credit card agreement on several of
our LOANLINER applications, but you would still be responsible
to provide the member with the Credit Card Agreement and Credit
Card Account Opening disclosure.
• The term “refinancing” should not be used as a subaccount name.
Advances on an open-end plan are not “refinanced”, advances
continue to accrue interest until repaid.
• Home improvement subaccounts are only allowed if they are NOT
secured by the borrower’s dwelling. If it is secured by a dwelling,
it is considered to be a home equity transaction and home equity
disclosures must be provided.
• Guaranteed government student loans cannot be added as a
subaccount under your Plan. If your student loan offering is not
guaranteed, you may add it as a subaccount.
• Individual Retirement Account (IRA) should not be added as a
subaccount. If the IRA is given as security, the borrower will lose
the tax-exempt status.
• Business and Agricultural subaccounts are not allowed because
Regulation Z does not apply to either business or agricultural plans.
c. Approximate Term
The approximate term is the period of time over which you expect
the balance of the subaccount to be repaid.
Formatting
Be sure to enter the approximate terms as you want them to appear
on the generated WORD documents. As an example, if you enter
Open-End Planning Guide — How to Build an Addendum 6-8
approximate term as 12, 12 is all that will appear. If you want it to
be 12 Months, then you must enter 12 and the word Months.
An approximate term is used to distinguish between subaccounts
when the annual percentage rate varies based on the length of
the term. Enter the approximate terms of each subaccount that
you offer. Note: Lines of Credit (LOC) and Overdraft Protection
subaccounts do no use approximate
terms.
An example would be:
Subaccount
Approx. Term
New Vehicle
New Vehicle New Vehicle 36 months
48 months
60 months
d. Annual Percentage Rate
Enter an Annual Percentage Rate (APR) for each approximate term
within a subaccount.
Formatting
Per Regulation Z, the annual percentage rate has to be in 10 point
bold type. A default has been set for this point size and format in
our Addendum Tool, however it cannot be protected so be diligent
when editing your Addendum.
For variable rate, in most cases, the current interest rate is
determined by taking the current index value and adding a margin.
Regulation Z has a variable rate accuracy standard for the APR,
which states that a rate is accurate if it is a rate as of a specified date
within the last 30 days before the disclosures are provided.
The regulation has eliminated the requirement to disclose ‘‘annual
percentage rate’’ and ‘‘finance charge’’ more conspicuously
than any other required disclosures when disclosed with a
corresponding amount or percentage rate.
e. Daily Periodic Rate
The Daily Periodic Rate is the annual percentage rate disclosed as
a daily rate and will be calculated for each approximate term by
the tool.
f. Variable Rate Information (only appears on screen if you have
selected Variable Rate as your rate type)
Open-End Planning Guide — How to Build an Addendum 6-9
Regulation Z requires disclosure of the fact that the rate may vary.
When you select a Variable Rate type, language will be added to
your Addendum that discloses this fact along with the Index or
Formula used for the Variable Rate plan. This language will appear
in the Annual Percentage Rate column located on your Addendum
in the Account Opening table.
It will state: This APR will vary with the market, based on the
Prime Rate.
Additional information from the Variable Rate Information
section will be collected and will appear below the Account
Opening Disclosure table in a paragraph format. It will include the
subaccount name along with the Variable Rate disclosures that are
required by Regulation Z as outlined below:
• Enter the Index or Formula name.
• Select a Rounding Factor, if applicable.
• Enter the Margin as a percentage.
• Select the Date used to determine the Index Value.
• Select an Interest Rate Change Cycle.
• Select a Minimum Interest Rate, if applicable.
• Select an Interest Rate Maximum.
• Select a Periodic Cap, if applicable.
• Select how the Effect of the increase will affect the payments
– either more payments or higher payments.
Example of Variable Rate Language:
The Annual Percentage Rate for the new and existing balances will be
the highest published Wall Street Journal Prime Rate, plus a margin
of 6.0%. We will use the most recent index value available to use as of
the last business day of the month preceding the date of any annual
percentage rate adjustment. The APR will change on the first day of
each month to reflect any change in the Index. The APR will never be
less than 2% below the initial rate. The APR will never be greater then
6% above the initial rate or the maximum allowed by law, whichever is
less. Any increase in the APR will result in more payments of the same
amount until what you owe is repaid.
Open-End Planning Guide — How to Build an Addendum 6-10
Fees
Fees are divided into three (3) sections to collect information on Annual
or Set-up and Maintenance fees, Transaction fees and Penalty fees.
As mentioned previously, the Regulation states that all charges imposed
as part of an open-end plan be disclosed before they are imposed. All
charges are considered as “charges that are imposed as part of the openend credit plan”.
Each fee section requires similar information as follows:
Annual or Set-up and Maintenance Fee Screen
The first section for fee entry will be the Set-up and Maintenance fees
(Annual fee, Participation fee, Dormancy fee, Inactivity fee, etc.).
Formatting
If your credit union only charges an Annual fee and no other Set-up and
Maintenance fees, then you will need to edit the title and change it on the
generated WORD Addendum to “Annual Fees.”
The following information will need to be collected:
• Enter name of Set-up and Maintenance fee.
• Select to disclose fee as dollar amount or percent.
• Enter fee amount.
• If disclosing as percent, enter description of the percentage as of a
certain portion/item.
•Provide circumstance under which the fee is imposed and include
the amount of the charge or how the charge is determined.
• Enter yes or no if this fee is a one-time fee. If the fee is not a one
time fee, then required additional information will be collected.
• Enter the frequency that the fee is imposed (enter exactly as
you wish it to appear on the Addendum).
• Enter the annualized amount of the fee .
Using the Screen
At the bottom center of the screen, click on the “Click here to save fee
information to document” button to continue to add fees.
Open-End Planning Guide — How to Build an Addendum 6-11
When you have entered your last Set-up and Maintenance fee, select the
“Click here if you have added all of your fees for this category” button that
is located at the top center of your screen.
You will be taken to the Transaction fees (processing fee, request fee, etc.)
screen where you can enter information about your Transaction fees. Once
you have finished entering Transaction fees, select the “Click here if you
have added all of your fees for this category” button and you will be taken
to the Penalty fees (late charge, over-the-credit-limit fee, returned check fee,
etc.) screen where you can enter information about your Penalty fees. After
you have finished all three (3) fee sections, select the “Click here if you have
added all of your fees for this category” button and you will be taken to the
Collection cost area of the Addendum Tool.
Domicile State Screen
Collection costs are not a required Truth in Lending disclosure however,
they must be included in the contract in order to collect them. Therefore,
if you want to impose collection costs when your borrower does not
pay, they must be included on the Addendum, outside of the Account
Opening Disclosure table. The Addendum tool prompts you to input
your Domicile state so that collection cost language appears on your
Addendum. The tool is setup to include the state names in the lead of the
collection cost language.
Signature Screen
The signature section is optional. When the borrower signs agreeing
to the terms of the Credit Agreement, he or she is also signing and
agreeing to the terms of the Addendum, which is part of the agreement
and incorporated by reference. However, some credit unions want their
borrowers to sign the Addendum, therefore, you can choose whether to
include signature lines on your Addendum.
Logo Information Screen
Credit union address information including a logo graphic can be
inserted into the final WORD generated Addendum. The Addendum tool
contains a series of questions that will collect information pertaining to
your logo and credit union address information.
If you have a logo that includes both the graphic and address
information, the Addendum Tool will remind you to insert your logo
Open-End Planning Guide — How to Build an Addendum 6-12
once you have generated your Addendum in a WORD format. (It is best
to use a logo that is formatted as a .tif file because the image is already
compressed.)
If you do not have a graphic logo or if you have a graphic logo but it
does not contain credit union information, you will be able to enter your
credit union address information and it will appear at the top of your
Addendum. Be sure to enter the information exactly as you want it to
appear.
Generating Your Addendum
When you have finished with the Logo Information Screen the WORD
“Save as” screen will appear.
Enter the file name for your
Addendum here and hit “Save”
Enter the name of your document on the File Name Field. Hit the “Save”
button to save the file.
Make sure that you select a name that is meaningful to your plan or credit
union. If you have tiered rates, you may want to name the Addendum the
Tier name that you use. A+ Addendum, A Addendum, B Addendum as
examples.
Once you reviewed your saved Addendum, you could decided to open
the Addendum and “Save As” naming it the 2nd tier that you offer. Then
you could open the file and edit the 2nd Tier document and make rate, fee
Open-End Planning Guide — How to Build an Addendum 6-13
or subaccount adjustments particular to that tier. Once you have saved
the B Addendum, you could continue with “Save As” to create your next
tiered Addendum (i.e., C Addendum and so forth).
If your Addendum goes beyond two pages, edit the footer and input “SEE
NEXT PAGE for more important information about your Account” to the
additional pages.
Frequently Asked Questions
1. Is a minimum payment required to be disclosed on the Addendum?
It is uncommon to have an overall minimum payment for a multifeatured open-end plan. Your member’s payment is disclosed on the
Voucher or Disbursement Receipt at the time of each advance.
However, for Overdraft Protection or Line of Credit Subaccounts,
you may include minimum payment language on the Addendum; you
will need to add your minimum payment language to the generated
WORD Addendum. Be sure to include the subaccount name in the
minimum payment paragraph so that your members can identify
which subaccount the minimum payment applies. This language
should be placed below the table.
Line of Credit or Overdraft Protection Minimum Payment Examples:
1) For the name of subaccount, the minimum payment will be 3% of
the outstanding balance or $50.00, whichever is greater. Advances
will be granted in increments of $100.00.
2) For the name of subaccount, the minimum payment will be $3.00
per $100.00 of the outstanding balance or $50.00, whichever is
greater. Advances will be granted in increments of $100.00.
3) For the name of subaccount, your minimum payment will never
be less than $25.00.
2. Can a minimum advance amount be charged for an overdraft?
Yes, if you offer an overdraft subaccount, you may impose a minimum
advance amount for the overdraft. For example, you may transfer
funds in $50.00 increments, even if the overdraft is only $10.00. You
will need to add language to your generated WORD Addendum to
disclose any limitations on transfer increments for your Overdraft
Subaccounts. This language should be placed below the table.
Open-End Planning Guide — How to Build an Addendum 6-14
3. How do I disclose Discounted/Introductory rates?
You will need to add information to your WORD generated
Addendum if you offer Discounted Rate/Introductory Rates.
For those subaccounts where you offer a Discounted Rate/
Introductory Rate, you will need to disclose information in the APR
column and below the Account Opening Disclosure table. Use a
10 point font for the introductory language and 10 point bold font for
the introductory rate in the APR column.
Step 1
Information to be disclosed in the APR column for each subaccount
that offers a Discounted Rate/Introductory Rate:
i. State the introductory rate (10 point bold)
ii. State how long the introductory rate is in effect
iii. State the new rate after the introductory rate expires
As an example: “6.99% Introductory APR for 12 months. After that,
your APR will be 7.5%”.
Step 2
Information to be disclosed below the table for each subaccount that
offers a Discounted Rate/Introductory Rate:
i. State the circumstances under which the introductory rate may
be revoked
ii. State the rate that will apply if the introductory rate is revoked
Be sure to identify the subaccount(s) that is affected. As an example:
“Loss of Introductory Rate: Your introductory rate for
New Boat purchase may be revoked if your payment is
late one (1) time. After your introductory rate expires,
your APR will be 10.00%”.
4. How should Preferred rates be handled for open-end lending?
Some credit unions offer a “preferred” rate on one (1) or more
subaccounts. Preferred rates are also known as patronage discounts or
relationship pricing. The credit union reduces the Annual Percentage
Rate by a certain percentage if the borrower has one (1) or more services
with the credit union.
Open-End Planning Guide — How to Build an Addendum 6-15
Regulation Z Section 226.5(c) indicates that the disclosures should
reflect the legal obligation - the credit terms to which the parties are
legally bound, which are the non-preferred rates therefore:
•disclose the legal obligation on the Addendum in the Account
Opening Disclosure Table;
•information can be provided to the borrower orally pertaining to
how preferred rates function at your credit union;
•disclose the preferred rate on the Voucher or Disbursement
Receipt;
•add preferred rates to your credit union’s policies and procedures
and;
•in the event that the member no longer qualifies for the preferred
rate, if you raise the rate to the legal obligation, you will need to
provide a change in terms notice.
NOTE: Do not add verbiage to Addendum about preferred rates, it
would cause Regulation Z advertising rule disclosures.
Open-End Planning Guide — How to Build an Addendum 6-16
This bold boxed section is the Account
Opening Disclosure table.
e
l
p
m
a
S
Fees must
be further
disclosed
below
the table
per the
regulation.
If the document is more than one page, each page
must indicate this statement
Open-End Planning Guide — How to Build an Addendum 6-17
The blank/empty
lines under the
column Annual
Percentage Rate
(APR) in the
Account Opening
Disclosure table
matches the
model provided
by the regulation
– do not remove.
This is a Variable
Rate. There
is a matching
Variable Rate
paragraph for
each subaccount
below the
table per the
regulation.
Fees must
be further
disclosed
below the
table per the
regulation.
These items
are part of
the Account
Opening
Disclosure
and must be
displayed
directly
beneath
the table.
e
l
p
m
a
S
Open-End Planning Guide — How to Build an Addendum 6-18
SECTION 7
ORDERING INFORMATION FOR
OPEN-END LOANLINER® DOCUMENTS
CUNA Mutual’s LOANLINER® Department is at your service to save
you time and money by offering you quality documents that have been
carefully researched, reviewed and developed especially for credit unions
in accordance with Federal Truth in Lending Regulations. Included in the
Order Form is a current LOANLINER® document catalog which provides
a document number and brief description of each document.
DOCUMENT PRICES – Prices for the documents are available upon
request. Please contact your CUNA Mutual Representative or call us at:
1-800-356-5012.
How to place an order:
1. Complete the Credit Agreement Analysis found on pages 7-3 and 7-4.
BE SURE TO KEEP A COPY FOR YOUR RECORDS along with the
Planning Guide.
2. Complete the Order Form that starts on page 7-5.
3. Additional items to send:
• Order Form
• Any special information you wish to have imprinted on your
documents
• Camera ready copy of your logo (if you wish to have it
imprinted on your documents)
You can place your order by doing one of the following:
• By Mail – You must mail your order if you are including a special
credit union logo for imprinting on your documents. We need a
glossy copy (also referred to as a “camera-ready” copy) of your
logo to scan into our system for imprinting.
• By FAX – You may FAX your order to us if you are not using a
special logo for imprinting. The LOANLINER® Department FAX
number is (608) 233-4535.
• By Phone – You may call in your document order if you are not
ordering imprinted documents for the first time, making any
imprint changes on documents you currently order, or sending us
your camera-ready logo.
Open-End Planning Guide — Ordering Information 7-1
How to Complete the Order Form:
Your order is important to us. Individual attention is given to all requests to
ensure you receive the best possible service. To provide this service we need
your help. When calling or sending an order, please be sure to include:
1. Contract number – By providing this number your order can be
processed easier and faster.
2. Data Processor Information – If you are ordering electronic
documents, this information is required to process your order.
3. Ship To Address – Street address where documents are to be sent.
(Postal regulations will not allow us to ship UPS to a post office
box.)
4. Bill To Address – Please provide your billing address if it is
different from your shipping address.
5. Logo Type – Indicate logo type.
6. Lending States – Indicate all states your credit union lends in.
7. Choose an Application – Indicate whether you would like the
Express Application or Full Application, use the catalog to assist
you with all available choices. When ordering Applications, you
may choose to have standard instructions or credit union specific
instructions imprinted. Also, if you select an Application with
credit card, please select a cost disclosure method.
8. Credit Agreement – Indicate if you are ordering a Basic or PLUS
Credit Agreement, completing all columns on the line. The
Packaged format has free-form space available for imprinted
language. If you choose a Credit Agreement with credit card,
indicate a cost disclosure method.
9. Voucher – Indicate which Voucher you are ordering – Basic/PLUS
or Disbursement Receipt, completing all columns on the line.
10.Miscellaneous Documents – Indicate any miscellaneous documents
you need to order to support your lending program.
Once you have completed the Order Form, send it to the LOANLINER®
Department by fax or mail.
Open-End Planning Guide — Ordering Information 7-2
Credit Agreement Analysis
INSTRUCTIONS
Completing the document will help you make your Credit Agreement format and Plan Option choices. After you
complete this document, use this information to place your order and complete the Specifications Worksheet.
QUESTIONS
If you have any questions about making your choices, call the LOANLINER® Department (1-800-356-5012) or your
CUNA Mutual representative (1-800-356-2644) for assistance.
SECTION 1 – Choose a Plan Option
A.
Answer all of the questions below by checking either Yes or No.
1.
2.
Do you do secured lending under an Open-End Plan?
MYes Go to question #2.
MNoYou should use the Basic Option because the PLUS Option is designed for those credit unions
that do secured and unsecured lending under an Open-End Plan. Check the Basic Option in
Part B below and go to Section 2 to choose a Credit Agreement.
Does your state require a signed copy of the Security Agreement when you file a lien?
MYesYou should use the Basic Option because with the PLUS Option, the Security Agreement
is signed at the time the Plan is opened versus at each advance. Check the Basic Option in
Part B below and go to Section 2 to choose a Credit Agreement.
MNo Go to question #3.
3.Your choice of the Basic or PLUS Option is now based solely on your business and operational needs.
The main consideration is do you want the Security Agreement and Credit Agreement combined in
order to get the borrower’s agreement to both at the time the Plan is established, thus allowing you to
deposit advances into the borrower’s account without additional signatures?
MYesYou should use the PLUS Option, under which you can deposit advances into the borrower’s
account without additional signatures. Check the PLUS Option in Part B below and then go to
Section 2 to choose a Credit Agreement.
MNoConsider the Basic Option. Check the Basic Option in Part B below and go to Section 2 to
choose a Credit Agreement.
B.
Check the Plan Option that you have chosen.
M Basic M PLUS
06-27860-PG1 (0609)
Open-End Planning Guide — Ordering Information 7-3
SECTION 2 – Choose a Credit Agreement Format
A. Answer all of the questions below by checking either Yes or No.
___1.Is it important to have a separate application, such as an electronically-generated application, loans
by phone system, Internet application, etc.?
MYesConsider the Flexible or Packaged Agreement format. Both allow the flexibility to use
whatever application method you like.
MNoConsider the Simplified Agreement format, which has an integrated Express Application.
___2.Is it important to have the borrower apply for the Plan and agree to its terms and conditions in one
step, thus streamlining your process for opening accounts?
MYesConsider the Simplified Agreement format, in which the application process and Plan
MNoOrder either the Flexible or Packaged Agreement format, in which the application process
MYesOrder the Packaged Agreement format, in which the Credit Union Copy and Borrower Copy are
attached in a 3-part, carbonless document.
MNoOrder the Simplified or Flexible Agreement format, in which the Credit Union Copy and
Borrower Copy are separate pieces.
___4.For documentation purposes, is it important to have both the credit union and borrower receive an
exact duplicate of all signatures, the Credit Agreement, and the Credit Insurance Application?
occurs separately from the Plan agreement process.
___3.Is it important to have the simplicity of one (1) document in which both the Credit Union Copy and
Borrower Copy of the Plan documents are included?
opening occur at the same time on one document.
MYesOrder the Packaged Agreement format, in which the credit union and borrower have exact
duplicates of the Plan signatures, insurance election, and Credit Agreement.
MNoOrder the Simplified or Flexible Agreement format, in which only the credit union retains
copies of the borrower’s signature and insurance election.
___5.Is it important to have the ability to order the Credit Union Copy and Borrower Copy of the Plan
documents separately so that you can, for example, electronically generate one of the pieces or give
a copy to each borrower under a joint open-end Plan?
MYesConsider the Simplified or Flexible Agreement format, in which both the Credit Union
Copy and Borrower Copy are separate.
MNoConsider the Packaged Agreement format, in which the Credit Union Copy and Borrower
Copy are integrated into one 3-part carbonless document.
B.Rank the features discussed in the questions above in order of importance, from most to least important, by
numbering the questions from 1 to 5 on the lines provided. The most important feature should be ranked #1
and the least important should be ranked #5.
C.
Check the Agreement format that you have chosen.
M Simplified Agreement M Flexible Agreement
M Packaged Agreement
Open-End Planning Guide — Ordering Information 7-4
Basic/PLUS
Consumer Open-End Lending
Order Form
M Place my order.
M Provide me with a price quote.
Contact Information
Data Processor Information
CONTRACT NUMBER
DP NAME
CREDIT UNION
LOAN ORIGINATION SYSTEM
CONTACT NAME
FILE FORMAT NEEDED
TELEPHONE
CONTACT
FAX NUMBER
PHONE
E-MAIL
E-MAIL
Ship to Address
M Check Box if Name and/or Address Change
Bill to Address
M Check Box if Name and/or Address Change
ATTN
ATTN
CREDIT UNION
CREDIT UNION
STREET ADDRESS
STREET ADDRESS
CITY/STATE/ZIP
CITY/STATE/ZIP
Select a credit union logo to be included on your document(s):
Credit Union logo type (Please select one)
Logo file format
MG
raphic only
MG
raphic and address
Street Address:_________________________________________
City/State/Zip:__________________________________________
Toll Free Number:_______________________________________
Telephone:_____________________________________________
Fax Number:___________________________________________
Web Address:__________________________________________
MM
y logo is already on file with CUNA Mutual
MM
y logo is included (We can accept a .tif, .eps, or
Group
camera-ready art for scanning. The quality of any
other method cannot be guaranteed.)
M Include “Hands & Globe” logo
(instead of CU logo)
M None
MA
ddress only
Street Address:_________________________________________
City/State/Zip:__________________________________________
Toll Free Number:_______________________________________
Telephone:_____________________________________________
Fax Number:___________________________________________
Web Address:__________________________________________
Please circle the states you lend in: AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA
KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA
RI SC SD TN TX UT VT VA WA WV WI WY All States
Please complete and send all applicable pages. For more information, call 1-800-356-5012.
To Order
Fax:
608-231-7748
E-Mail: LOANLINER@cunamutual.com
Call:
LOANLINER Customer Service at
1-800-356-5012, Option 1
Mail:
CUNA Mutual Group
LOANLINER Customer Service
PO Box 391
Madison, WI 53701-0391
Open-End Planning Guide — Ordering Information 7-5
Basic Open-End
Consumer Lending Order Request
Credit Union:_______________________________________________________________
Contract #:___________________
Place a checkmark (3) directly below the document number of the item(s) you wish to order and complete all columns as applicable for each document.
CHOOSE AN APPLICATION
Document
Number
Description
(Standard document size is 8 1/2” x 11” for all
media types. Actual paper document size is
indicated if different than standard size.)
AXX02*
Full Application without Credit Card
AXX12*
Full Application with Credit Card
AXX33*
Express Application with Credit Card
AXX43*
Express Application with Credit Card
3
for CU
Logo/Other
Electronic Format
( 3 all that apply)
Paper
Quantity
(Minimum 100)
USAGE
M LOS M Internet
M ll.com
M Other – Explain:
FORMAT
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
8 1/2” x 5 1/2”
AXX53*
Express Application without Credit Card
AXX73*
Express Application without Credit Card
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
8 1/2” x 5 1/2”
OTHER APPLICATION CHOICES (see document listing on last page)
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M Standard How to Apply Instructions: • Please complete front and back of application • Sign on back page • Return completed application to the
credit union • An incomplete or unsigned application may delay processing
M CU Specific How to Apply Instructions: Please attach a copy of the instructions you want imprinted on the Application.
Application with Credit Card
If you selected
an Application
with Credit
Card
Are you providing an Account Opening Disclosure with the application?
M Y es –Then we will print the following on the application: Reference to cost disclosure: A table that includes the APRs and
other required costs disclosures for credit card applications is on a separate document provided with this Application.
M No –Then we will print the following on the application: Costs associated: There are costs associated with the use of this
card. To obtain information about these costs, call us toll free at ________________________ or write to us at the
address stated on the Application.
*Document Version If column is grayed out, the feature is not allowed or the document format is not available.
Open-End Planning Guide — Ordering Information 7-6
Basic/PLUS Open-End
Consumer Lending Order Request
Credit Union:_______________________________________________________________
Contract #:___________________
Place a checkmark (3) directly below the document number of the item(s) you wish to order and complete all columns as applicable for each document.
CHOOSE A CREDIT AGREEMENT
Document
Number
Description
(Standard document size is 8 1/2” x 11” for all
media types. Actual paper document size is
indicated if different than standard size.)
BXX01*
Simplified with Credit Card – CU Copy
BXX02*
Flexible – CU Copy
BXX03*
Simplified or Flexible – Borrower Copy
3
for CU
Logo/Other
Electronic Format
( 3 all that apply)
Paper
Quantity
(Minimum 100)
USAGE
M LOS M Internet
M ll.com
M Other – Explain:
FORMAT
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
8 1/2” x 17”
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
BXX08*
Simplified without Credit Card – CU Copy
BXX70*
Flexible – Open-End Plan Signatures – CU Copy
BXX00*
Packaged
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
8 1/2” x 14”
M Static PDF
M Fillable PDF
__________________
IF LENDING IN THE STATES OF PA OR VA: CHOOSE A STATE-SPECIFIC CREDIT AGREEMENT
IF PA, CHOOSE BORROWER COPY ONLY
IF VA, CHOOSE EITHER THE VA PACKAGED OR A CREDIT UNION AND BORROWER COPY
(see document listing on last page)
M PA
BXPA3* Borrower Copy
M VA
BXVA0*Packaged (combines CU Copy and Borrower Copy)
BXVA1* CU Copy
BXVA2* CU Copy
BXVA3* Borrower Copy
CHOOSE A CREDIT AGREEMENT
BXX06*
Simplified with Credit Card – CU Copy
BXX07*
Flexible – CU Copy
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
8 1/2” x 14”
BXX04*
M Static PDF
M Fillable PDF
__________________
Simplified or Flexible – Borrower Copy
8 1/2” x 17”
M LOS M Internet
M ll.com
M Other – Explain:
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
(continued)
Open-End Planning Guide — Ordering Information 7-7
Basic/PLUS Open-End
Consumer Lending Order Request
CHOOSE A CREDIT AGREEMENT (continued)
Description
Document
Number
(Standard document size is 8 1/2” x 11” for all
media types. Actual paper document size is
indicated if different than standard size.)
BXX09*
Simplified without Credit Card – CU Copy
BXX70*
Flexible – Open-End Plan Signatures – CU Copy
BXX05*
Packaged
3
for CU
Logo/Other
Electronic Format
( 3 all that apply)
Paper
Quantity
(Minimum 100)
USAGE
M LOS M Internet
M ll.com
M Other – Explain:
FORMAT
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
8 1/2” x 14”
M Static PDF
M Fillable PDF
__________________
IF LENDING IN THE STATES OF PA OR VA: CHOOSE A STATE-SPECIFIC CREDIT AGREEMENT
IF PA, CHOOSE BORROWER COPY ONLY
IF VA, CHOOSE EITHER THE VA PACKAGED OR A CREDIT UNION AND BORROWER COPY
(see document listing on last page)
M PA
BXPA3* Borrower Copy
M VA
BXVA4*Borrower Copy
BXVA5* Packaged (combines CU Copy and Borrower Copy)
BXVA6* CU Copy
BXVA7* CU Copy
SIMPLIFIED FORMAT
M Standard How to Apply Instructions: • Please complete front and back of application • Sign on back page • Return completed application to the
credit union • An incomplete or unsigned application may delay processing
M CU Specific How to Apply Instructions: Please attach a copy of the instructions you want imprinted on the Credit Agreement.
Simplified Credit Agreement with Credit Card
If you selected
a Simplified
Credit
Agreement
with Credit
Card
Are you providing an Account Opening Disclosure with the Credit Agreement?
M Y es –Then we will print the following on the credit agreement: Reference to cost disclosure: A table that includes the APRs
and other required costs disclosures for credit card applications is on a separate document provided with this Credit
Agreement.
M No –Then we will print the following on the credit agreement: Costs associated: There are costs associated with the use
of this card. To obtain information about these costs, call us toll free at ________________________ or write to us
at the address stated on the Credit Agreement.
PACKAGED FORMAT
The free form area at the top of the document is for your use. Indicate what specific language you would like to imprint there (business hours, branch
offices, Addendum disclosures, etc.) in the space below: __________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
*Document Version If column is grayed out, the feature is not allowed or the document format is not available.
Open-End Planning Guide — Ordering Information 7-8
Basic/PLUS Open-End
Consumer Lending Order Request
Credit Union:_______________________________________________________________
Contract #:___________________
Place a checkmark (3) directly below the document number of the item(s) you wish to order and complete all columns as applicable for each document.
ADDENDUM TOOL
Document
Number
Description
Addendum Tool
MXX20*
CHOOSE A VOUCHER
Document
Number
Description
(Standard document size is 8 1/2” x 11” for all
media types. Actual paper document size is
indicated if different than standard size.)
VXX03*
Voucher – No Debt, No Insurance
VXX05*
Voucher – No Debt With Insurance
3
for CU
Logo/Other
Electronic Format
( 3 all that apply)
Paper
Quantity
(Minimum 100)
USAGE
M LOS M Internet
M ll.com
M Other – Explain:
FORMAT
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
8 1/2” x 14”
M Static PDF
M Fillable PDF
__________________
IF LENDING IN THE STATES OF FL, LA OR WI: CHOOSE A STATE-SPECIFIC VOUCHER
(see document listing on last page)
M FL
M LA
M WISelect format for all of
the selected state-specific
documents:
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
If a different Usage/Format is required for a particular state document, please indicate below:
State: _____________ Usage/Format: ______________________ State: ________________ Usage/Format: ____________________
State: _____________ Usage/Format: ______________________ State: ________________ Usage/Format: ____________________
CHOOSE A DISBURSEMENT RECEIPT
VXX08*
Disbursement Receipt PLUS
8 1/2” x 51/2”
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
VXX09*
Disbursement Receipt PLUS with Insurance and
Signature
VXFL9*
Florida Disbursement Receipt PLUS with
Insurance and Signature
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
__________________
Open-End Planning Guide — Ordering Information 7-9
M Static PDF
M Fillable PDF
Basic/PLUS Open-End
Consumer Lending Order Request
CHOOSE MISCELLANEOUS DOCUMENTS
GXX01*
Guaranty Agreement
GXX11*
Guaranty Agreement with Notice to Co-Signer
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
(For Federally Chartered Credit Unions Only)
MXX02*
Notice to Co-Signer
MXX05*
Subsequent Action
MXX07*
Adverse Action
MXX88*
Security Agreement
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
IF LENDING IN THE STATES OF CA, FL, IA, LA, ME, NY OR WI: CHOOSE A STATE-SPECIFIC MISCELLANEOUS DOCUMENT
(see document listing on last page)
M CA
M FL
M IA
M ME
M NY
M WI
M LA
Select format for all of
the selected statespecific documents:
M LOS M Internet
M ll.com
M Other – Explain:
M Static PDF
M Fillable PDF
__________________
If a different Usage/Format is required for a particular state document, please indicate below:
State: _____________ Usage/Format: ______________________ State: ________________ Usage/Format: ____________________
State: _____________ Usage/Format: ______________________ State: ________________ Usage/Format: ____________________
*Document Version
Open-End Planning Guide — Ordering Information 7-10
LOANLINER® DOCUMENTS
State specific documents are noted in the document description.
DOCUMENT
NUMBER
TYPE
DOCUMENT DESCRIPTION
APPLICATIONS
AXX02*
P & E1 Full Application Without Credit Card
AXX12*
P & E Full Application With Credit Card
AXX33*
P & E Express With Credit Card (81/2 x 11)
AXX43*
P
Express With Credit Card (81/2 x 51/2)
AXX53*
P & E Express Without Credit Card (81/2 x 11)
AXX66*
P
Full Application Without Credit Card ‑ Tumbled
AXX73*
P
Express Without Credit Card (81/2 x 51/2)
BASIC CREDIT AGREEMENTS
BXX00*
P & E Packaged
BXX01*
P & E Simplified With Credit Card ‑ Credit Union Copy
BXX02*
P & E Flexible ‑ Credit Union Copy
BXX03*
P & E Flexible or Simplified ‑ Borrower Copy
BXX08*
P & E Simplified Without Credit Card ‑ Credit Union Copy
BXX70*
P & E Flexible – Open End Plan Signatures –
Credit Union Copy
BXPA3*
P
PA Flexible or Simplified ‑ Borrower Copy
BXVA0*
P
VA Packaged
BXVA1*
P
VA Simplified With Credit Card ‑ Credit Union Copy
BXVA2*
P
VA Flexible ‑ Credit Union Copy
BXVA3*
P
VA Flexible or Simplified ‑ Borrower Copy
Required
Required
Required
Required
Required
Required
Required
Required
Required
Required
Required
Required
Required
Optional
Optional
Optional
Optional
PLUS CREDIT
BXX04*
P&E
BXX05*
P&E
BXX06*
P&E
Required
Required
Required
BXX07*
BXX09*
Required
Required
BXX70*
BXPA4*
BXVA4*
BXVA5*
BXVA6*
BXVA7*
AGREEMENTS
Flexible or Simplified PLUS ‑ Borrower Copy
Packaged PLUS
Simplified PLUS With Credit Card ‑
Credit Union Copy
P & E Flexible PLUS ‑ Credit Union Copy
P & E Simplified PLUS Without Credit Card ‑
Credit Union Copy
P & E Flexible – Open End Plan Signatures –
Credit Union Copy
P
PA Flexible or Simplified PLUS ‑ Borrower Copy
P
VA Flexible or Simplified PLUS ‑ Borrower Copy
P
VA Packaged PLUS
P
VA Simplified PLUS With Credit Card ‑
Credit Union Copy
P
VA Flexible PLUS ‑ Credit Union Copy
IMPRINT
Required
Optional
Optional
Optional
Optional
ADDENDUM
MXX20*
E
Addendum Tool
LINE OF CREDIT
N/A
BXX80*
N/A
E
Line of Credit Tool
DOCUMENT
NUMBER
TYPE
DOCUMENT DESCRIPTION
VOUCHERS AND DISBURSEMENT RECEIPTS
VXX00*
P & E Line of Credit
VXX01*
P & E Advance Request
VXX03*
P & E No Debt, No Insurance
VXX05*
P & E No Debt, With Insurance
VXX07*
P & E No Debt, With Insurance & Filing Copy
VXX08*
P & E Disbursement Receipt PLUS
VXX09*
P & E Disbursement Receipt PLUS With Insurance &
Signature
VXFL9*
P & E Florida Disbursement Receipt PLUS With
Insurance & Signature
VXX31*
P
Continuous No Debt, No Insurance
VXX32*
P
Continuous No Debt, With Insurance
VXX33*
P
Continuous No Debt, With Insurance
VXX36*
P
Continuous No Debt, With Insurance & Filing Copy
VXFL0*
P & E FL Line of Credit
VXFL7*
P & E FL No Debt, No Insurance
VXLA1*
P & E LA No Debt, No Insurance & Filing Copy
VXWI0*
P & E WI No Debt, With Insurance
MISCELLANEOUS DOCUMENTS (Open-End & Closed-End)
GXX01*
P & E Guaranty Agreement
GXX11*
P & E Guaranty Agreement With Co-Signer Notice
GXME0* P & E ME Guaranty Agreement
MXCA0* P & E CA Notice to Co-Signer
MXIA0*
P & E IA 2-PT Notice to Co-Signer
MXNY0* P & E NY OE/CE Notice to Co-Signer
MXWI0* P & E WI Explanation of Personal Obligation
MXX00*
P
Document Folder
MXX02* P & E Notice to Co-Signer
MXX05* P & E Subsequent Action
MXX06* P & E Subsequent Action Without Insurance
MXX07* P & E Adverse Action
MXX08*
E
Adverse Action Mailer Form
MXX09* P & E FL Subsequent Action With Statement of Intent
MXX11* P & E FACT Act Notice
MXX12*
E
Truth in Lending Disclosure
MXX61*
E
Risk Based Pricing Notice
MXX62*
E
Account Review Risk Based Pricing Notice
MXX64*
E
Credit Score Exception Notice Consumer
MXX65*
E
No Cedit Score Notice
MXX66*
E
Risk Based Pricing Notice with Credit
Score Information
MXX67*
E
Account Review Risk Based Pricing Notice with
Credit Score Information
MXX70* P & E Pre-Approved Payment Order
MXLA7* P & E LA Pre-Approved Payment Order
MXX88* P & E Security Agreement
MXX90* P & E Security Agreement PLUS
* Indicates Version Number
1
P & E stands for Paper and Electronic
Open-End Planning Guide — Ordering Information 7-11
IMPRINT
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
N/A
N/A
Optional
Optional
Optional
Optional
Optional
N/A
Optional
Optional
N/A
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
Optional
P.O. Box 391
5910 Mineral Point Road
Madison, WI 53701-0391
Phone: 800.356.2644
Email: loanliner@cunamutual.com
World Wide Web: http://www.loanliner.com