Common use of Minimum Payment Requirements Clause in Contracts

Minimum Payment Requirements. Under the terms of this Home Equity Line of Credit, you may obtain two types of credit advances: Variable Rate Advances; and Fixed Rate Advances. The advance requirements, the repayment requirements, and the applicable periodic interest rates for these two types of advances differ, as explained below. You may obtain Variable Rate Advances at any time, subject to your maximum credit limit, and the terms of your Agreement. You may also obtain Fixed Rate Advances at any time, subject to your maximum credit limit, the terms of your Agreement, and the limitations described in the next two sentences. The terms of each Fixed Rate Advance will depend on the terms that you request and the circumstances of your Account at the time of your request, and will be disclosed to you at the time of each advance. Your Account is limited to a maximum of three (3) outstanding Fixed Rate Advance balances at any time. Your minimum periodic payment for each billing cycle is the sum of the minimum periodic payments due for any Variable Rate Advance balance and any Fixed Rate Advance balance you have during that billing cycle, plus any other amounts that may be due under the terms of the agreement. Variable Rate Advances You can obtain credit advances for 120 months (the draw period). During the draw period, payments will be due on a monthly basis during any time that you have a balance on your account. At our option, we may extend the draw period. Your minimum monthly payment will be established at the close of each billing cycle at an amount equal to all accrued yet unpaid finance charges due, subject to the lesser of $100.00 or Your Account balance. After the draw period ends, you will no longer be able to obtain credit advances and you must repay your outstanding account balance (the repayment period). The length of the repayment period will be 180 months. During the repayment period, your minimum periodic payment will be established on the first day of the repayment period and any subsequent change in interest rate, to the amount necessary to fully amortize your then outstanding account balance by the agreement maturity date.