TERMS & CONDITIONS

External Loan Payment Agreement

This External Loan Payment Agreement applies to the loan payment service that permits Cy-Fair Federal Credit Union (CY-FAIR FCU) members (consumers, sole proprietors and a limited number of other business customers) to pay their CY-FAIR FCU loan(s) through the use of our Online Banking service. This Agreement supplements the terms and conditions in the loan documents that govern your loan accounts. If there is any conflict between this Agreement and the loan documents, the terms and conditions of the loan documents will prevail. You should read this Agreement carefully to understand how our External Loan Payment Service features work, as well as your rights and obligations if you use these services.

Agreeing to this Agreement

By using the External Loan Payment Service (the “Service”), you acknowledge that you have received and understand the terms of this Agreement and agree to be bound by the provisions of this Agreement and any amendments that are made from time to time. You should retain a copy of this Agreement for your records. If you are unable to print this Agreement, we will mail you a paper copy at your request. You agree that email or other electronic communications that we send you shall be treated as “writing” and shall bind each of us in the same way as a written communication.

Accessing the Service

To make a loan payment using the Service, you must have an active CY-FAIR FCU loan account and access to our Online Banking service. If you have a CY-FAIR FCU checking or savings account, you may transfer funds from your account directly to your CY-FAIR FCU loan without using this Service. To access our Online Banking Service, you must use a browser with 128-bit encryption.

External Loan Payments

External Loan Payment Transfer enables you to make payments to your loan with us using a checking account, savings account, or debit card from another (external) Financial Institution. When using an external means of payment, you authorize the Credit Union to electronically debit your designated account (and if necessary, to electronically credit such account to correct erroneous debits) at the Financial Institution to make a payment on your loan as specified.

Overview

By submitting the payment information, you authorize Credit Union to originate an ACH transaction from your Other FI, including debit cards, to credit your Loan with us (excluding credit card and mortgage loans). You agree to follow any applicable instructional material we provide to schedule and initiate your Loan payment transfers ("External Loan Payment").

Charges or Fees

We may charge you a fee for each Loan Payment transfer made by debit card. We reserve the right to change fees and charges applicable to this service from time to time. Please refer to our Fee Schedule for additional information. Additionally, charges for other transactions and optional services (e.g., Non-Sufficient Funds or Stop Payment Fees) are specified in the Fee Schedule.

You agree to pay such fees and charges and authorize the External Loan Payment Transfer to charge a designated account at your Other FI for these amounts and any additional charges that may be incurred by you. Any fees associated with your Loan account will continue to apply.

Accounts

You understand that in order to complete External Loan Payment, it is necessary for the Credit Union and its External Loan Payment Transfer service provider to access the websites and databases of your Other FI and other institutions where you hold accounts, as designated by you and on your behalf, to retrieve information and effect the External Loan Payment you request. By using the External Loan Payment Transfer, you represent and warrant to the Credit Union that you have the right to authorize and permit the Credit Union to access Your accounts to affect such External Loan Payment or for any other purpose authorized by this Agreement, and you assure the Credit Union that, by disclosing and authorizing the Credit Union to use such information, you are not violating any third-party rights. You warrant and represent that the information you are providing the Credit Union with is true, current, correct and complete. You hereby authorize and permit the Credit Union and its External Loan Payment Transfer service provider to use information submitted by you to accomplish these purposes and to configure the External Loan Payment service to be compatible with the accounts.

For as long as you are using the External Loan Payment Transfer, you give to the Credit Union and its External Loan Payment Transfer service provider, a limited power of attorney coupled with an interest and appoint the Credit Union and its External Loan Payment Transfer service provider as your true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for you and in your name, place and stead, in any and all capacities, to access the accounts, effect funds transfers as described above, with full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection with effecting External Loan Payment. Once the Credit Union and/or its External Loan Payment Transfer service provider has actual knowledge that you wish to cease using the External Loan Payment Transfer as provided in this Agreement or as otherwise permitted in this Agreement and has a reasonable opportunity to act on such knowledge, this limited power of attorney is automatically revoked; provided, however, that any act done by the Credit Union and/or its External Loan Payment Transfer service provider in good faith before the Credit Union has actual knowledge of termination by you and has a reasonable opportunity to act on such knowledge shall be deemed to be authorized by you.

You understand and agree that at all times your relationship with each account provider is independent of the Credit Union and your use of the External Loan Payment Transfer. The Credit Union will not be responsible for any acts or omissions by the Other FI or other provider of any account, including without limitation any modification, interruption or discontinuance of any account by such provider.

YOU ACKNOWLEDGE AND AGREE THAT WHEN THE CREDIT UNION AND ITS EXTERNAL LOAN PAYMENT TRANSFER SERVICE PROVIDER IS EFFECTING AN EXTERNAL LOAN PAYMENT TRANSFER FROM OR TO ANY OF YOUR ACCOUNTS, THE CREDIT UNION AND ITS EXTERNAL LOAN PAYMENT TRANSFER SERVICE PROVIDER IS ACTING AS YOUR AGENT, AND NOT AS THE AGENT OR ON BEHALF OF ANY THIRD PARTY. YOU AGREE THAT THE CREDIT UNION, ITS AFFILIATES, SERVICE PROVIDERS AND PARTNERS SHALL BE ENTITLED TO RELY ON THE FOREGOING AUTHORIZATION, AGENCY AND POWER OF ATTORNEY GRANTED BY YOU.

YOU AGREE THAT THE CREDIT UNION SHALL NOT BE LIABLE FOR ANY COSTS, FEES, LOSSES OR DAMAGES OF ANY KIND INCURRED AS A RESULT OF (1) THE CREDIT UNION'S ACCESS TO THE ACCOUNTS; (2) THE CREDIT UNION'S DEBIT AND/OR CREDIT OR INABILITY TO DEBIT AND/OR CREDIT THE ACCOUNTS IN ACCORDANCE WITH YOUR EXTERNAL LOAN PAYMENT TRANSFER INSTRUCTIONS; (3) ANY INACCURACY, INCOMPLETENESS OR MISINFORMATION CONTAINED IN THE INFORMATION RETRIEVED FROM THE ACCOUNTS; (4) ANY CHARGES IMPOSED BY ANY PROVIDER OF ACCOUNTS AND (5) ANY EXTERNAL LOAN PAYMENT TRANSFER LIMITATIONS SET BY THE FINANCIAL INSTITUTIONS OR OTHER PROVIDERS OF THE ACCOUNTS.

Not all types of accounts are eligible for External Loan Payment Transfer. The Credit Union is not responsible for any costs or losses incurred from fund transfers that are not permitted under such restrictions by the provider of your account or those imposed by applicable law.

Accuracy of Information You Provide

You agree to provide true, accurate, current and complete information about yourself and your accounts at the Other FI, and you agree not to misrepresent your identity or information related to your accounts at your Other FI. You acknowledge that we will rely on the information provided by you, and you authorize us to act on any instruction which has been or reasonably appears to have been sent by you. We are not obligated to take any further steps to confirm or authenticate such instructions and may act upon them without further communication. If instructions identify a Financial Institution and/or a Third-Party Account by name and number, Cy-Fair Federal Credit Union may execute those instructions by reference to the number only, even if the number does not correspond to the name. You acknowledge that financial institutions may not investigate discrepancies between names and numbers. We shall have no Liability for any losses resulting directly or indirectly from any of your errors, duplication, ambiguities or misrepresentations in the information that you provide.

Electronic Communications

The External Loan Payment Transfer service is an electronic, Internet based-service and that information will be transmitted to you in accordance with the eStatements and eCommunications sections below.

Frequency and Dollar Amounts of Transfers

You may prepay any amount without penalty. If you prepay any part of what you owe, you are still required to make the regularly scheduled payments, unless we have agreed to a change in the payment schedule. Maximum payment amount is $9,999.99. The Credit Union may from time to time for security and risk management reasons modify the limits, the frequency and the dollar amount of External Loan Payment Transfers you can make using the External Loan Payment Transfer.

Transfers Subject to the Rules of the Accounts

Additionally, all External Loan Payment are also subject to the rules and regulations governing the relevant accounts. You agree not to affect any External Loan Payment from accounts that are not allowed under the rules or regulations applicable to such accounts.

Rejection of Transfers

The Credit Union reserves the right to decline to affect any External Loan Payment, to submit External Loan Payment instructions or orders or to carry out cancellation requests.

Authorization

You authorize the Credit Union to select any means to execute Your External Loan Payment instructions. You understand that, to affect Your External Loan Payment instruction, the Credit Union utilizes either Merchant Processing (debit card), or the Automated Clearing House (ACH) using applicable ACH Rules, the Credit Union debits an account at Your Other FI and credits Your Credit Union loan account. The Credit Union reserves the right to resubmit a debit, or a portion of the debit, in the event of an insufficient or uncollected funds return and if the Credit Union cannot collect the amount credited. To affect this collection, You understand and authorize the Credit Union to debit the credited loan account or the debited account in either the same dollar amount as the original funds transfer or a portion of the debit. There may be a fee associated with such collection imposed by the financial institution holding the account.

You understand and agree that the Credit Union may impose additional charges in connection with Your External Loan Payment transactions. The Credit Union may notify You of such fee in advance of the transaction. If You choose to proceed with the transaction, You authorize the Credit Union to debit Your account in the amount indicated.

In the event that a debit to any of Your accounts, or any portion of any such debit, has failed and the credit side of such transaction has been released and cannot be collected, and the Credit Union is unable to debit either the debited or the credited account as set forth above, the Credit Union reserves the right, and You hereby authorize the Credit Union to debit any of Your other accounts to the extent necessary to offset any resulting deficiency. The Credit Union will not undertake to notify You in such event, other than by posting any such transfer or transfers to the applicable account in accordance with this Agreement.

You understand and agree that in the event the Credit Union is unable to execute Your External Loan Payment request utilizing the ACH or Debit Card, the Credit Union may utilize other established payment mechanisms in order to complete Your External Loan Payment instructions, such as wire transfer or check.

You agree to and understand that the following terms apply to this authorization:

  • Your account at the Other Financial Institution will be debited (charged) and funds will be credited to Your Cy-Fair Federal Credit Union loan.

  • You acknowledge that it is Your responsibility to insure that sufficient funds are on deposit in Your account at the Other FI on the Payment date the Loan Payment Transfer is initiated ("Payment Initiation Date") to make the payment as scheduled. In the event that funds are not available in Your account at the Other FI and the entry is returned, Credit Union will debit Your Loan and it will be Your responsibility to re-initiate the transaction or make a payment by other means.

  • If the due date for Your External Loan Payment falls on a non-Business day, the transaction will occur on the next business day.

  • You understand that payments scheduled for the same day or next day may still take a business day to process and anything submitted after 7:30 pm CST will begin processing the next business day.

  • Credit Union is relying on the information You entered. If the information is incorrect, the debit may be returned, which could result in Your payment being late and additional fees or charges.

  • You understand that this payment transaction must comply with all applicable law. This authorization will remain in effect unless/or until You notify Credit Union that You have revoked it. Notice must be given by completing the "Cancel" transaction in the External Loan Payment section of the online banking service prior to 7:00 pm CST on the Payment Initiation Date. You can also stop payment by notifying the Other FI that holds the account from which payment will be debited.

  • If any payment is rejected or is reversed for any reason, that payment will be reversed on Your Loan and You will be responsible for making payment to the Credit Union separately.

Timing of External Loan Payment Transfers and Related Information

Scheduled recurring payments will be posted on the Payment Initiation Date at end-of-processing day. Payments will be credited to your Loan on the scheduled Payment Initiation Date at end-of-processing day. Because of the time required to process transactions, a Loan Payment Transfer that you initiate may or may not be reflected in the balances of your affected Accounts before the transaction is actually processed and posted in our official records for the Accounts. Subject to the requirements of applicable law, you agree that we shall have a reasonable opportunity and time to complete the posting of Loan Payment Transfers. Future dated Loan Payment Transfers may be canceled through the External Loan Payment platform at any time prior to 7:00 pm CST on the Payment Initiation Date. Funds will be applied to your Loan account according to the loan terms and conditions.

Scheduling Payments

For each Payment Initiation Date, the External Loan Payment Transfer will designate your Loan due date. To ensure timely credit to your Loan by the due date, you must select a Payment Initiation Date that is no later than the actual date that your payment is due. If the actual due date falls on a non- Business Day, you must select a Payment Initiation Date that is at least one (1) Business Day before the actual due date. If the date of your recurring payment falls on a non-Business Day, the payment will be initiated on the Business Day next day to the Payment Initiation Date. Scheduled Payment Initiation Dates must be prior to any late date or the end of any grace period. You are responsible for any late charge, finance charge, penalty or default or other consequence that may result from your selecting a Payment Initiation Date later than the due date.

Cancelling External Loan Payments

You may cancel any External Loan Payment you have initiated or scheduled (including recurring payments) by following the instructions within Online Banking. You may not cancel an External Loan Payment after the service has begun processing the transaction and/or after 7:00 pm CST as displayed in the platform. You should refer to other sections of the Agreement for additional terms regarding the cancellation of payments. Otherwise, we shall have no obligation to cancel, or stop payment on any payment that you have initiated through the External Loan Payment Transfer, except as required by applicable law.

Documentation

You may access all External Loan Payments affected or pending at any time by logging into Online Banking and clicking on the "External Loan Payment" option under the “Move Money” tab. You will have access to 90 days of External Loan Payment history. Additional transaction history is available by viewing your monthly banking statements.

Your Responsibility for Errors

You understand that the Credit Union must rely on the information provided by You and You authorize the Credit Union to act on any instruction which has been or reasonably appears to have been sent by You, to submit External Loan Payment funds transfer instructions on Your behalf. You understand that financial institutions receiving the funds transfer instructions may rely on such information. The Credit Union is not obligated to take any further steps to confirm or authenticate such instructions and will act on them without getting further confirmation. You understand that, if You provide the Credit Union with incorrect information or if there is any error in Your instruction, the Credit Union will make all reasonable efforts to reverse or delete such instructions, but You accept full responsibility for losses resulting from any of Your errors, duplication, ambiguities or fraud in the information that You provide. You agree not to impersonate any person or use a name that You are not authorized to use. If any information You provide is untrue, inaccurate, not current or incomplete, without limiting other remedies, the Credit Union reserves the right to recover from You any costs or losses incurred as a direct or indirect result of the inaccurate or incomplete information. If You believe there are any errors in the External Loan Payment Transfer, please refer to our error resolution process on our "electronic funds transfer" agreements.

Security Procedures

You understand that the financial institution at which an account is maintained may contact the Credit Union to verify the content and authority of funds transfer instructions, including External Loan Payments, and any changes to those instructions. You understand that, as your agent, the Credit Union may provide to such financial institution such information as may be required to verify the instructions and may constitute a valid security procedure under the rules governing such account.

Account Number Policy

If funds transfer instructions identify a bank or beneficiary by name and account number, the relevant financial institution may execute those instructions by reference to the number only, even if the number does not correspond to the name. You understand that such financial institutions may not investigate discrepancies between names and numbers. In addition, you agree that the Credit Union has no responsibility to investigate discrepancies between names and numbers.

Joint Account Holder

In submitting information for the External Loan Payments Transfer, you confirm that, if any of your accounts is a joint account, your joint account holder has consented for you to use your accounts for the External Loan Payment Transfer. The Credit Union will suspend your use of the External Loan Payment Transfer if any joint account holder notifies the Credit Union that (i) they never consented to your use of the Credit Union's External Loan Payment Transfer, (ii) the joint account can no longer be operated on your instructions alone, or (iii) they are withdrawing consent for you to operate the joint account.

Means of Transfer

You authorize the Credit Union to select any means the Credit Union deems suitable to provide your External Loan Payment instructions to the applicable Financial Institution. These choices include banking channels, debit card, electronic means, funds transfer systems, mail, courier, or telecommunications services, intermediary banks and other organizations. You agree to be bound by the rules and regulations that govern the applicable funds transfer systems, such as CHIPS or automated clearing house (ACH) as published by the National Automated Clearing House Association (NACHA). The Credit Union shall make all reasonable efforts to ensure that your transfer requests are processed on time; however, the Credit Union reserves the right to hold funds beyond the normal period and if any interest is earned will be the property of the Credit Union.

Our Liability

You agree that Your External Loan Payment instructions constitute authorization for the Credit Union to complete the transfer. You represent and warrant to the Credit Union that You have enough money in the applicable accounts to make any External Loan Payment You request that the Credit Union makes on Your behalf through the External Loan Payment. You understand and agree that the Credit Union is not liable under any circumstances for any losses or damages if, through no fault of the Credit Union, You do not have enough money to make the External Loan Payment, and the External Loan Payment is not completed or is later reversed or if Your Financial Institution does not permit the transfer or the External Loan Payment would exceed the credit limit on any applicable overdraft line.

You also understand and agree that the Credit Union is not responsible for any losses or damages if circumstances beyond the Credit Union's control (such as fire or flood) prevent the Credit Union from making an External Loan Payment or if the Credit Union website was not working properly, and You knew about the breakdown when You started the External Loan Payment.


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