Express-News Federal Credit Union

Express-News Federal Credit Union

Emergency Payroll Advance Loan

To Be Completed By Member’s Supervisor

Expected Hours To Be Paid - Next Paycheck ________

I acknowledge (that I am the supervisor of the person whose name is shown above (Member Name) and that the Expected Hours To Be Paid - Next Paycheck are accurate

Supervisor’s Signature ___________________________

Supervisor’s Printed Name ____________________________

Supervisor’s Telephone Number ___________________________

To Be Completed By Members Payroll Department

Employer’s Name __________________________________

Expected Net Pay - Next Paycheck $_____________

Date or Next Paycheck _________________________

I acknowledge the above information is correct and that the next paycheck for this employee will be deposited at the Express-News Federal Credit Union through Direct Deposit.

Payroll Department Contact’s Signature ______________________________

Payroll Department Contact’s Printed Name ___________________________

Payroll Department’s Telephone Number _______________________________

Text Box: To Be Completed By The Member

Member Name _________________________________________

Member Number ___________ Amount Requested $_________

Type or Emergency ____________________________________

Express-News Federal Credit Union

Emergency Payroll Advance Loan Policy

Purpose: A short-term loan to advance money to a member from immediate future earnings for an emergency need.

Reason: Some employers including the San Antonio Express-News do not make payroll advances to their employees.

Conditions:

Member must have direct deposit of their full paycheck at the Express-News Federal Credit Union.

Member must have an Emergency Payroll Advance form signed by their payroll department stating the member’s expected net pay for the current pay period and acknowledging that the member’s direct deposit will not be changed prior to the next pay day. The credit union will confirm this information with the member’s payroll department.

The Emergency Payroll Advance form will be a simple application on which the member will acknowledge the loan and authorize the deduction of the Emergency Payroll Advance from the next direct deposit of their pay.

The amount of the Emergency Payroll Advance is limited to 80% c the net pay of the members next paycheck.

A member may receive only one Emergency Payroll Advance in a six-month period.

No credit check will be made and no other restrictions apply.

The Emergency Payroll Advance must be repaid in-full from the member’s next paycheck.

To guarantee repayment, a hold will be put on the members account on the day before the direct deposit of the member’s pay is to be entered, the payment will be transferred to the loan on the member’s pay day and the hold will be removed.

A member will not be allowed to receive future Emergency Payroll Advances if they fail to comply with the Conditions and Terms of the Emergency Payroll Advance policy.

The member wilt be charged a $25 processing fee for the Emergency Payroll Advance.

Interest will not be charged on the Emergency Payroll Advance if it is repaid when due.

EXPRESS-NEWS FEDERAL CREDIT UNION

HELPING HAND LOAN

June 22, 1995

Description of Loan: A loan to higher risk borrowers. The borrower is the primary applicant. The borrower may have a co-applicant.

Qualification Requirements: Same as “Line of Credit” requirements with the following exceptions.

1 A high debt ratio and accounts that are 90 days or more delinquent will not prevent a loan from being considered.

“P&L’s” will not count against the borrower if these accounts are paid off by the loan. Recurring delinquent accounts will have an unfavorable impact upon loan approval.

Loan Approval: Loan approval will be by a majority vote of a committee consisting of one loan officer and two Credit Advisory Board members or, if a loan officer is not available, of three Credit Advisory Board members.

Amount of Loan:

Unsecured Loan - approval of the loan will not exceed $3,000.00 or one month’s gross income, the lesser of the two.

Secured Loan - amount of loan will be determined by the collateral, not to exceed 50% of the loan value.

Disposition of Proceeds of the Loan: The Credit Union will write checks directly to accounts shown as “P&L” or 90 days or more delinquent on the borrower’s credit report. The balance of the proceeds, not to exceed $500.00, will be paid to the borrower.

Interest Date and Pay-Back Terms: Same as “Line of Credit” loan with the interest rate adjusted as follows:

Plus a predetermined “risk rate” added to “Line of Credit” interest rate.

Less a predetermined “seniority rate” for each year of continuous employment with the borrower’s current employer.

The interest rate will not be lest than a predetermined “minimum rate”.

Other Terms and Conditions:

This loan is a closed-end loan and 75% of the principal must be repaid before future loans will be granted.

The borrower must have, or open, an Express-News Federal Credit Union share draft account.

The borrower must have direct deposit, if available, to their Express-News Federal Credit Union share draft account.

The loan payment will be automatically deducted from this share draft account.

If the borrower has an Express-News Federal Credit Union MasterCard, the credit limit will be reduced to $500, and if a delinquency occurs with the MasterCard during the life of the loan, the MasterCard will be canceled immediately.

The borrower must not have a “P&L” with the Express-News Federal Credit Union within the last seven (7) years.

Rates for Helping Hand Loan - effective Juue 22, 1995:

Risk rate 6.00%

Seniority rate 0.20%

Minimum rate 15.00%

Revised 5-30-96

Board of Directors has allotted $100,000.00 of the loan portfolio to this type of loan.