Rates

Closed End Loan Repayment Example:

A loan of $50,000 for a term of 120 months with a 6.25% APR would equal 119 monthly payments of $561.49 with a final payment of $560.96.

APR is Annual Percentage Rate. All rates subject to change. All rates are based on borrower’s creditworthiness. Other restrictions may apply. The payments do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation will be greater. See a loan officer for details or contact a credit union representative at (361) 242-7827 or toll-free (877) 827-9196.

Credit Life and Disability Insurance is available separately.

Additional Reduced Loan Rates with Relationship Discount Points

• .25% – 10% down payment on secured loans
• .25% – Direct Deposit/Automatic Transfer Payment

As a state-chartered credit union, we have a statutory lien on the shares and dividends and, if any, the deposits and interest in all individual and joint accounts you have with us and may exercise our rights under the lien to the extent permitted by state law. For all borrowers: the statutory lien and/or your pledge will allow us to apply the funds in your account(s) to what you owe when you are in default. The statutory lien and your pledge do not apply to any Individual Retirement Account or any other account that would lose special tax treatment under state or federal law if given as security. Additional security for the Plan may be required at the time of an advance. If a subaccount identifies a type of property (such as “New Cars”) you must give that type of property as security when you get an advance under that subaccount.

The “Finance Charge” is inclusive of all costs for the credit or what previously was termed “interest”. It is computed at the time a payment is received by multiplying the loan balance by the periodic rate per day as shown on the face of the statement and then multiplying the result by the number of days from the last loan transaction to the current date. Loan balance does not include interest. The balance used to compute the finance charge is the actual balance in the account each day after credits have been subtracted and new advances and other charges have been added.

IN CASE OF ERRORS OR INQUIRIES ABOUT YOUR STATEMENT

The Federal Truth in Lending Act requires prompt correction of errors appearing on your statement.

1. If you want to preserve your rights under the Act, here’s what to do if you think your statement is wrong or if you need more information about an item on your statement.
2. The credit union must acknowledge all letters pointing out possible errors within 30 days of receipt, unless the credit union is able to correct your statement during those 30 days. Within 90 days after receiving your letter, the credit union must either correct the error or explain why the credit union believes the statement was correct. Once the credit union has explained the statement, the credit union has no further obligation to you even though you still believe that there is an error, except as provided in paragraph 5 below.
3. After the credit union has been notified, neither the credit union nor an attorney nor a collection agency may send you collection letters or take other collection action with respect to the amount in dispute: but periodic statements may be sent to you, and the disputed amount can be applied against your credit limit. You cannot be threatened with damage to your credit rating or sued for the amount in question, nor can the disputed amount be reported to a credit bureau or to other creditors as delinquent until the credit union has answered your inquiry. HOWEVER, YOU REMAIN OBLIGATED TO PAY THE PARTS OF YOUR OUTSTANDING BALANCE NOT IN DISPUTE.
4. If it is determined that the credit union has made a mistake on your statement, you will not have to pay any finance charges on any disputed amount. If it turns out that the credit union has not made an error, you may have to pay finance charges on the amount in dispute, and you will have to make up any missed minimum or required payments on the disputed amount. Unless you have agreed that your statement was correct, the credit union must send you a written notification of what you owe and, if it is determined that the credit union did make a mistake in billing the disputed amount, you must be given the time to pay which you normally are given to pay undisputed amounts before any more finance charges or late payment charges on the disputed amount can be charged to you.
5. If the credit union’s explanation does not satisfy you and you notify the credit union IN WRITING within 10 days after you receive the explanation that you still refuse to pay the disputed amount, the credit union may report you to credit bureaus and other creditors and may pursue regular collection procedures. But the credit union must also report that you think you do not owe the money, and the credit union must let you know to whom such reports were made. Once the matter has been settled between you and the credit union, the credit union must notify those to whom the credit union reported you as delinquent of the subsequent resolutionIf the credit union does not follow these rules, the credit union is not allowed to collect the first $50 of the disputed amount and finance charges, even if the statement turns out to be correct.
   1. Do not write on the statement. On a separate sheet of paper write (you may telephone your inquiry BUT DOING SO WILL NOT PRESERVE YOUR RIGHTS UNDER THE LAW) the following:
   2. Send your statement error notice to STAR Financial Credit Union 10429 Leopard Street, Corpus Christi, TX 78410. Mail it as soon as you can, but in any case, early enough to reach the credit union within 60 days after the bill was mailed to you.
      1. Your name and account number
      2. A description of the error and an explanation (to the extent you can explain) why you believe it is an error. If you only need more information, explain the item you are not sure about, and if you wish, ask for evidence of the charge to your account. Do not send in your copy of any document unless you have a duplicate copy for your records.
      3. The dollar amount of the suspected error.
      4. Any other information (such as your address) which you think will help the credit union to identify you or the reason for your complaint or inquiry.

*Dividend rates subject to change. Call (361) 242-STAR (7827) for current dividend rates.

**Annual Percentage Yield. The Annual Percentage Yield is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. Maintenance or Activity fees and conditions could reduce the earnings on the account. For further information, call a credit union employee at (361) 242-STAR (7827) or (877)827-9196 for out of town members.

The variable dividend rate is determined by the Board of Directors to be effective the first day of the following month.

Certificate Account Disclosure

Early Withdrawal Penalty

We may impose a penalty if you withdraw any of the principle before the maturity date.

Amount of Penalty

Any penalty for early withdrawal may effect principle. Penalties for early withdrawals are as follows:

Exceptions to Early Withdrawal Penalties

At our option, we may pay the account before maturity without imposing an early withdrawal penalty in the event that an account owner dies or is determined legally incompetent by a court or other body of competent jurisdiction.

Renewal Policy

EFFECTIVE June 1, 2005 all investment certificates will automatically renew with a 10 calendar-day grace period after automatic renewal to either close OR withdraw funds without penalty.

Non-transferable/Non-negotiable

Your account is non-transferable and non-negotiable. The funds in your account may not be pledged to secure any obligation of an owner, except obligations with the Credit Union.

Rate Information

The Annual Percentage Yield (APY)is a percentage rate that reflects the total amount of dividends to be paid on an account based on the dividend rate and frequency of compounding for an annual period. For all accounts, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. The Annual Percentage Yield is based on an assumption that dividends will remain on deposit until maturity. A withdrawal of dividends will reduce earnings. The rates and fees appearing in this Schedule are accurate as of the Effective Date. If you have any questions or require current rate and fee information on your accounts, please call the credit union.

Nature of Dividends

Dividends are paid from current income and available earnings after required transfers at the end of the dividend period.

Dividends Compounding and Crediting

The compounding and crediting of dividends applicable to each account is set forth in the Rate Schedule. The Dividend Period begins on the first calendar day of the Dividend Period and ends on the last calendar day of the Dividend Period. For Investment Certificates, the member may select the crediting and dividend period for monthly or at maturity.

Balance Information

The minimum balance requirements applicable to each account are set forth in the Rate Schedule. For all accounts, dividends are calculated by the Average Daily Balance method which applies a periodic rate to the average daily balance in the account for the period. The average daily balance is determined by adding the full amount of the principal in the account for each day of the period and dividing that figure by the number of days in the period.

Accrual of Dividends

For all accounts, dividends will begin to accrue on noncash deposits (e.g. checks) on the business day you make the deposit to your account. For all accounts, if you close your account before accrued dividends are credited, accrued dividends will not be paid.

Transaction Limitations

After your account is opened, your ability to make additional deposits to your account or withdrawals of dividends and any limitations on such transactions are set forth in the Rate Schedule.

*STAR Financial Certificate Account

To open this account, the member must have at least three (3) of the following five(5) services: Share Draft/Checking, ATM/Debit Card, Credit Union MasterCard, Direct Deposit, or loan.
The minimum required balance must be deposited upon opening the account.
The member may select the crediting and dividend period for monthly or at maturity.
One time option to withdraw up to 20% of the balance without penalty at any time during the fifteen (15) month term.