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Your FundCash line of credit is a revolving secured line of credit
offered by Presidential Bank. FundCash lines of credit are available
in minimum amounts of $10,000 to a maximum of $1,000,000. In order
to establish your line of credit, you must pledge to Presidential
Bank a security interest in the mutual funds and any other financial
assets you provide as collateral.
The current market value and risk category of your collateral determines
your "Credit Limit".
Your Credit Limit is the maximum total amount that you may draw
down on your Credit Line. Your Credit Line can be accessed simply
by writing checks.
You may select one of the following Draw
Period options: 1 year, 3 years, 5 years, or 7 years. The "Draw
Period" is the period of time during which you are permitted
to obtain credit advances by drawing on your Credit Line, provided
that there is sufficient market value in the assets that you have
pledged as collateral. During the Draw Period, you are required
to pay monthly only a Finance Charge based upon the "Average
Daily Balance" of your outstanding credit advances. There is
no "free ride" or interest-free period that would allow
you to avoid a Finance Charge on your Credit Line advances. After
the end of the Draw Period, you will no longer be able to obtain
any credit advances under your Credit Line. The next phase of your
Credit Line is the "Repayment
Period". Unless your Credit Line is extended, during the
Repayment Period you will repay your loan by making principal and
interest payments for a period of exactly 8 years (96 months).
Your Periodic Rate and the corresponding Annual Percentage Rate
is a variable rate, based upon an independent index (the "Index"),
which is the Prime Rate as published in the Eastern Edition of the
Wall Street Journal. When a range of rates has been published, the
highest of the rates will be used. For each billing cycle, we will
use the most recent Index that was available to us on the last business
day before the billing cycle began. The corresponding Annual Percentage
Rate will be adjusted for each billing cycle, based upon this Index.
The Index is not necessarily the lowest rate charged by us on our
loans. Any increase in the Periodic Rate will be reflected in higher
Minimum Payment amounts. Each adjustment to the Periodic Rate and
to the corresponding Annual Percentage Rate resulting from changes
in the Index will take effect on the first day of each respective
billing period. In no event will the corresponding Annual Percentage
Rate be more than the maximum rate allowed by applicable law. We
will not charge Finance Charges on any undisbursed Loan proceeds,
except for the Activation Fee described below.
In addition to the recurring monthly Finance Charge, you will be
charged an additional one-time Finance Charge, in the form of an
Activation Fee, which will be calculated
as 1.00% of the Principal Amount
of your Note not exceeding $25,000, plus 0.50% of any Principal
Amount exceeding $25,000 and not exceeding $100,000, plus 0.25%
of any Principal Amount exceeding $100,000 and not exceeding $500,000,
plus 0.10% of any Principal Amount exceeding $500,000. You will
be required to pay the Activation Fee in order to establish your
Credit Line and the related securities custody account.
If you have any additional questions or concerns please contact
FundCash Credit at csr@fundcash.com, or go to contact
us. Or, call us at our toll free number 800-343-7887 between
the hours of 9am to 5pm ET.
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