LOAN PAYMENT TERMS

EXTERNAL LOAN PAYMENT SERVICES AGREEMENT

1. Introduction. This Agreement and Disclosure Statement (the “Agreement”) for External Loan Payment Services (the “Service”) sets forth the terms and conditions for use of our external loan payment services with Kitsap Credit Union (hereafter referred to as “we,” “us” or “our”) as described herein. The member (referred to as “you” or “your”) should read this Agreement carefully and keep an electronic or print a hard copy of it for your records. Each time you use any Service described in this Agreement or allow any other person to use any Service in relation to any of your accounts or financial products or services, you are confirming your acceptance of the terms of this Agreement (including, but not limited to, the terms of that particular Service) that are in effect at that time.

2. Electronic Communications. The External Loan Payment service is an electronic, Internet based service. Therefore, you understand and agree that this Agreement will be entered into electronically and that the following categories of information (“Communications”) may be provided to you by electronic means:

  • This Agreement and any amendments, modifications, or supplements to it.
  • Your records of loan payment transfers through the service, including without limitation confirmations of individual transactions.
  • Any initial, periodic, or other disclosures or notices provided in connection with the Service, including without limitation those required by federal or state law.
  • Any customer service communications, including without limitation, communications regarding claims of error or unauthorized use of the Service.
  • Any other communication related to the Service.

You should print a paper copy of this Agreement and any electronic Communication that is important to you and retain the copy for your records. If you do not agree to receive this Agreement or the Communications electronically, you may not use the Service.

It is your responsibility to maintain a current e-mail address on file with Kitsap Credit Union and notify us of any changes. Communications may be posted on the pages of the Service website or other website disclosed to you and/or delivered to the e-mail address you provide. Any electronic Communication sent by e-mail will be deemed to have been received by you when we send it to you, whether you received the e-mail. If the Communication is posted on the Service, then it will be deemed to have been received by you no later than five (5) business days after we post the Communication on the pages of the Service, whether you retrieve the Communication. Electronic Communication by e-mail is considered to be sent at the time that it is directed by Kitsap Credit Union's e-mail server to the appropriate e-mail address. Electronic Communication made by posting to the pages of the Service is considered to be sent at the time it is publicly available. You agree that these are reasonable procedures for sending and receiving electronic Communications.

3. Description of Services. With the External Loan Payment Service, you may draft a checking account, savings account, or money market checking account from another financial institution to pay a Kitsap Credit Union loan. Once your account with us has terminated for any reason, you will have no further right or access to use the Service. Any member authorized to view loan accounts using the Online Banking system is eligible for this service.

4. Transaction Limits. We have the right, at any time, to set dollar limits on daily and monthly transactions. If you try to initiate a payment over these limits, the system will not allow you to continue. Paying more than the regular payment may not advance your due date into the future, but it will reduce your balance. Kitsap Credit Union reserves the right to delay the posting of any item for any reason outside of this standard timeframe, most notably if a transaction is suspected to be fraudulent or unauthorized. Mortgage payments cannot be made using this service. An Automated Clearing House (ACH) payment can only be processed using a checking, savings, or money market account from another financial institution. Debit card payments are not allowed.

5. Eligible Items. You can submit payments to the following loan types: Auto Loan, Line of Credit, Credit Card, Personal Loan, and Home Equity.

6. Recurring Items. When you request a recurring payment, the initial amount set will remain a static amount. The Service will not read a minimum payment in subsequent months. It is your responsibility to monitor your minimum monthly payment requirements, cancel recurring payments when they are no longer desired, or a loan has been paid in full. Kitsap Credit Union is under no obligation to place a stop on these payments.

7. Requirements. Each transaction must have a valid routing number and full account number when submitting the payment. We offer the External Loan Payment Service as an added convenience to you. We have the right to terminate this agreement with no prior written notice. We may terminate this agreement based on but not limited to: Non-Sufficient Funds (NSF) items or receiving returned items via the Federal Reserve Bank.

8. Security. You must inform us immediately of such items as, but not limited to: your Online Banking credentials may have been compromised, any unauthorized or fraudulent items posted to your loan accounts. To report such instances, please contact Kitsap Credit Union at 800-422-5852. You agree to provide us with any financial information we reasonably request during the term of this Agreement, however, Kitsap Credit Union will never text, email, or call you requesting your Online Banking password or security verification codes. You authorize us to review your history, as necessary.

9. Payment Processing

  • Payments submitted before 3:30 p.m. (PST) Monday through Friday will be processed the same business day (excluding holidays).
  • Payments submitted after 3:30 p.m. (PST) Monday through Friday will be processed on the next business day (excluding holidays).
  • Payments submitted after 3:30 p.m. (PST) Friday or anytime Saturday or Sunday will be processed on the next business day (excluding holidays).

10. Receipt of Payment. Any confirmation from us that we have received the payment does not mean that the payment contains no errors. We are not responsible for any payments that we do not receive. Kitsap Credit Union reserves the right, at our sole and absolute discretion, to reject any payment for External Loan Payments into your loan account. We will notify you of rejected payments by mail.

11. Returned Payments. Any credit to your loan account is provisional. If the original payment is dishonored, rejected, or otherwise returned by the receiving financial institution for payment or are rejected or returned by any commitment for the collecting financial institution that is obtaining the draft payment, for any reason, including, but not limited to, issues relating to debiting funds, you agree that the provisional credit to the loan account will be reversed.  You will reimburse us for all loss, cost, or expense caused by, or relating to, the processing of the returned item.

12. Errors. Any payments made using the External Loan Payment Service will be reflected on your monthly periodic statement. You understand and agree that you are responsible for notifying us immediately of any suspected error relating to payments made using the External Loan Payment Service by no later than 30 days after the date of the periodic statement that includes any transaction you allege is erroneous. You are responsible for any errors that you fail to bring to our attention within the specified timeframe.

13. Disclosure of Account Information to Third Parties. We will not disclose information to third parties about your accounts or payments you make, except:

  • Where it is necessary for completing the transaction;
  • To verify the existence and condition of your account to a third party, such as a credit bureau or merchant;
  • To comply with a governmental agency or court order; or
  • If you give us your permission.

14. External Loan Payment Service Unavailability. The External Loan Payment Service may be unavailable temporarily due to system maintenance or technical difficulties, including those of the Internet service provider, cellular service provider, and Internet software. In the event that the External Loan Payment Service is unavailable, you may pay your loan at any Kitsap Credit Union location.

15. Warranties. You make the following warranties and representations with respect to each payment pursuant to law, regulation, or clearinghouse rule:

  • Each payment is from a true and accurate account.
  • The amount is accurate.
  • You are an authorized signer on the account you have provided to us.

16. Your Responsibility. You are solely responsible for the completeness, accuracy, validity, and integrity of each External Loan Payment initiated. You are solely responsible if you, intentionally or unintentionally, submit fraudulent or incorrect transfer information to us or if External Loan Payment Service is used, by authorized or unauthorized persons, to submit fraudulent, unauthorized, inaccurate, incorrect, or otherwise improper usage to us for processing.

17. Accountholder’s Indemnification Obligation. You understand and agree that you are required to indemnify us and hold us harmless against any and all claims, actions, damages, liabilities, costs, and expenses, including reasonable attorneys’ fees, and expenses arising from your use of the Services and/or breach of this Disclosure and Agreement. You understand and agree that this paragraph shall survive the termination of this Agreement.

You understand and agree that you are required to indemnify our technology partners, including NCR. NCR, its affiliates, officers, employees, and agents should be held harmless from and against any third-party claims, suits, proceedings, actions or demands, including to claims of another financial institution, business entity or governmental authority, and all losses, liabilities, damages, fines, penalties, costs and expenses, including court costs and reasonable attorney fees and expenses, arising from such claims, to the extent such claim is related to Kitsap Credit Union or End User’s use of the Service, NCR Applications, unless such claim directly results from an action or omission made by NCR in bad faith. You understand and agree that this paragraph shall survive the termination of this Agreement.

18. Compliance with Law. You will use this system for lawful purposes and in compliance with all applicable laws, rules, and regulations. You warrant that you will only transmit acceptable items for payments and in accordance with applicable laws, rules, and regulations.

19. DISCLAIMER OF WARRANTIES. YOU AGREE THAT YOUR USE OF THE EXTERNAL LOAN PAYMENT SERVICE AND ALL INFORMATION AND CONTENT (INCLUDING THAT OF THIRD PARTIES) IS AT YOUR RISK AND IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS. WE DISCLAIM ALL WARRANTIES OF ANY KIND AS TO THE USE OF ANY OF THE EXTERNAL LOAN PAYMENT SERVICE, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. WE MAKE NO WARRANTY THAT THE EXTERNAL LOAN PAYMENT SERVICE WILL MEET YOUR REQUIREMENTS OR WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE.

20. LIMITATION OF LIABILITY. YOU AGREE THAT WE WILL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING, BUT NOT LIMITED TO, DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, DATA OR OTHER LOSSES INCURRED BY YOU OR ANY THIRD PARTY ARISING FROM OR RELATED TO THE USE OF, INABILITY TO USE, OR THE TERMINATION OF THE USE OF THE EXTERNAL LOAN PAYMENT SERVICE, REGARDLESS OF THE FORM OF ACTION OR CLAIM (WHETHER CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE), EVEN IF WE HAVE BEEN INFORMED OF THE POSSIBIITY THEREOF, EXCEPT AS OTHERWISE REQUIRED BY LAW.

21. Change in Terms. We reserve the right to change the terms and conditions of this Agreement, or to terminate this Agreement at any time, without notice to you.