Complaint Limited Up to 10KCal. Super. - 6th Dist.April 6, 2021E-FILED 4/6/2021 10:22 AM Clerk of Court Superior Court of CA, County of Santa Clara 21CV380255 Reviewed By: R. Guillermo 21CV380255 1O 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 John P. Kenosian. Bar #80261 Law Offices of Kenosian & Miele‘ LLP 8581 Santa Monica Blvd, #17 Los Angeles, CA 90069 Phone (888)566-7644 Fax (310)289-5177 Attorney for DEBT MANAGEMENT PARTNERS, LLC SUPERIOR COURT OF CALIFORNIA COUNTY OF SANTA CLARA SAN JOSE LIMITED DEBT MANAGEMENT PARTNERS, LLC , pase No.: A Limited Liability Company F Plaintifl‘ i vs‘ {COMPLAINT MARTIN GRIJALVA l1. BREACH 0F CONTRACT and DOES 1 to 5, inclusive, b. COMMON COUNTS Defendant(s) Demand DOES NOT EXCEED 510.000.00 Plaintiff DEBT MANAGEMENT PARTNERS, LLC (“Plaintiff“) alleges causes of action against defendant(s) MARTIN GRIJALVA (“Defendant") and Does 1 to 5 inclusive as follows: Preliminag Facts 1. Plaintiff is and was at all times herein mentioned A Limited Liability Company . 2. Defendant is a natural person 3. As used herein the singular form of a word includes the plural‘ and the plural form Complaint - 1 _ DEBT MANAGEMENT PARTNERS. LLC vs MARTIN GRIJALVA 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 includes the singular. The gender form of a‘word in'cludes all other genders. 4. Defendants, Does 1 to 5 are sued under fictitious names, their true names being unknown to the Plaintiff and Plaintiff will ask leave of the coun to amend its complaint when theiH true names are ascertained. Each fictitiously named defendant is in some way responsible for the occurrences alleged herein and proximately caused the damages prayed for in this complaint. Each named and Doe defendant was acting as the agent, employee or with the authority of the other defendants. 5. This is the proper court because Plaintiff is informed and believes that the Defendant resided in this jurisdictional district at the time of filing of this complaint. 6. Plaintiff is a debt buyer. 7‘ The nature of the underlying debt stems from the iSSUance of a LOANME. INC loan account number ending in XXXX230 (hereinafter “Account") to Defendant, and Defendant’s failure to repay the remaining balance due, resulting in a default by the Defendant. 8, Prior to filing this lawsuit Plaintiff acquired sole ownership of the debt at issue‘ or has authority to assert the rights of all owners of the debt‘ 9. Plaintiff alleges that: (a) The debt balance at charge-off was $658991. (b) The amount of post-charge-off interest is $163574 (c) The amount of post-charge-off fees is $0.00. The amounts set forth in this paragraph are exclusive of amounts that may be recovered under Civil Code of Procedure §§ 1033 or 1033.5 relating to the recovery of costs in an action 10. The date of the last payment was on 10-01-18‘ 11. The name and an address of the charge-off creditor at the time of charge-off: LOANME. INC 1900 S. STATE COLLEGE BLVD, STE. 300 ANAHEIM. CA‘ 92806. The last three digits Complaint _ 2 - DEBT MANAGEMENT PARTNERS LLc vs MARTIN GRIJALVA 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 of the charge-off creditor's account number associéted with the debt at the time of charge-off was XXXX230. 12. The name and last known address of the Defendant as they appeared in the charge-off creditor’s records prior to the sale of the debt was MARTIN GRIJALVA, 1515 POMONA AVE # A SAN JOSE. CA 951 10. 13. The name and addresses of all post charge-off purchasers of the debt are as follows: DEBT MANAGEMENT PARTNERS, LLC 6400 SHERIDON DRIVE #100 WILLIAMSVILLE. NY 14221 14‘ Plaintiff has complied with California Civil Code § 1788,52. 15. This action is an obligation subject to Code of Civil Procedure § 395 (b). for goods, loans or extensions of credit intended primarily for personal, family or household use, other than an obligation described in California Civil Code § 1812,10 or California Civil Code § 2984.4. 16. This action does not fall under the Unruh Act, California Civil Code § 1801. or under the Rees-Levering Motor Vehicle Sales and Finance Act. California Civil Code § 2981. 17. The above statements apply to each of the following causes of action. Complaint - 3 _ DEBT MANAGEMENT PARTNERS. LLC vs MARTIN GRIJALVA 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 FIRST CAUSE OF ACfION - BREACH OF CONTRACT 18A On 04-02-18, Defendant entered into a Promissory Note and Disclosure Statement with LOANME. INC for the issuance of a loan. The Promissory Note and Disclosure Statement was executed via certified digital software pursuant to the Electronic Signatures in Global and National Commerce Act (E-Sign Act). By the terms of the Promissory Note and Disclosure Statement. LOANME, INC loaned to Defendant, a sum of money under loan now bearing account number ending XXXX230 (the “Account"y Defendant promised to pay LOANME. INC all sums loaned with interest, fees and charges. A true and correct copy of the LOANME. INC Promissory Note and Disclosure Statement is attached as Exhibit "A” 19. Subsequently. the Defendant defaulted by failing to pay the minimum monthly payments that were due. 20. Plaintiff and LOANME. INC have done everything required of each to be done and each performed all their obligations to Defendant. except those obligations the Plaintiff and LOANME. INC were prevented from doing or excused from doing. 21, The Defendant left due and owing the outstanding principal balance of $6589.91. 22‘ Damages were suffered both legally and proximately caused by Defendant’s breach of LOANME. INC Promissory Note and Disclosure Statement in that Defendant left due and owing the outstanding principal balance of $6589.91 with interest thereon. Although demand has been made, the amount prayed for is due, owing and unpaid from Defendant SECOND CAUSE 0F ACTION - OPEN BOOK 23A Plaintiff re-alleges and incorporates herein the foregoing paragraphs of this complaint. 24. At the Defendant's direction or authorization, funds were lent by LOANME. INC to and for the benefit of Defendant. 25. Defendant became indebted to LOANME. INC on an open book account Complaint - 4 - DEBT MANAGEMENT PARTNERS LLc vs MARTIN GRIJALVA 1O 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26‘ At all relevant times, Plaintiff has ha'd sole awnership of the debt at issue, or has the authority to assert the rights of all owners of the debt. 27. Plaintiff has made a demand on the Defendant for payment of the open book account. There is now due, owing and unpaid from the Defendant the outstanding principal sum of $658991. plus interest thereon. THIRD CAUSE OF ACTION - ACCOUNT STATED 28. Plaintiff re-alleges and incorporates herein the foregoing paragraphs of this complaint. 29. Defendant became indebted to LOANME, INC , on an account stated whereby Defendant and LOANME, INC agreed that the amount stated in the account was the correct amount owed to LOANME, INC . 30. Defendant is in default in that Defendant has failed to pay the outstanding balance due. 31. At all relevant times, Plaintiff has had sole ownership of the debt at issue, or has the authority to assert the rights of al| owners of the debt. 32‘ Plaintiff has made a demand on the Defendant for payment of the account stated. There is now due. owing and unpaid from the Defendant the outstanding principal sum of $6589.91, plus interest thereon. \\ \\ \\ Complaint _ 5 _ DEBT MANAGEMENT PARTNERS LLc vs MARTIN GRIJALVA 1O 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 'PRAYE'R WHEREFORE. as to all causes of action, Plaintiff prays for judgment as follows: (a) Damages of $6589.91; (b) Prejudgment interest at the rate of ten percent (10%) per annum from and after 02-28-19 to the date of entry of judgment; (c) Attorney's fees according to proof: (d) Costs of suit; and (e) For such other relief as is fair, just and equitable. Dated: March 25, 2021 By: John P, Kenosianwney fo(Plaintiff f ,/ «/ ’/ Complaint _ 6 - DEBT MANAGEMENT PARTNERS LLC vs MARTIN GRIJALVA EXHIBIT A LOANME, INC. PROMISSORY NOTE. AND DISCLOSURE STATEMENT Loan 230 Date of Note: March 31, 2018 No.2 . Expefzted Funding Apr“ 02’ 2018 Date. Lender: LoanMe, Inc. Borrower: MARTIN GRIJALVA Address“ 1900 s. State College Boulevard Suite Addmss; £515 POMONA AVE 300 . SAN JOSE, CAAnaheim, CA 92806 95110 In this Promissory Note and Disclosure Statement ("Note"), the words "you" and "your" mean the person signing as a borrower. "We," "us,", and "our," mean LoanMe, Inc. and any subsequent holder of this Note. TRUTH IN LENDING ACT DISCLOSURE STATEMENT ANNUAL PERCENTAGE RATE JThe cost of your credit as a yearly rate 85.29 °/o FINANCE CHARGE AMOUNT FINANCED The dollar amount the credit will cost you $32,100.64- The amount of credit provided to you $6,350.00 TOTAL OF PAYMENTS The amount you w/I/ have paid after al/ payments are made as scheduled $38,450.64 PAYMENT SCHEDULE One payment of $435.97 on May 01, 2018. 83 monthly payments of $452.76 beginning on June 01, 2018. One payment of $435.59 on May 01, 2025. Late Charge: Prepayment: If a payment is 15 days late, you will be charged $15.00. If you pay off this loan early, you will not have to pay any penalty. Please see the remainder of this document for additional information about nonpayment, default and any required repayment in full before the scheduled date. ITEMIZATION DF AMOUNT FINANCED Amount Financed: $6,350.00 Amount Paid to Borrower Directly: $6,350.00 Prepaid Finance Charge/Origination Fee: $250.00 PROMISSORY NOTE AND ARBITRATION AGREEMENT This Note, including any and all signatures hereto, is In original format an electronic document created in accordance with the Electronic Signatures in Global and National Commerce Act (E- SIGN) and other applicable laws and regulations, and that the one, true original Note is retained electronically by us. All other versions hereof, whether electronic or in tangible format, constitute facsimiles or reproductions only. FOR VALUE RECEIVED, you promise to pay to the order of LoanMe, Inc., or any subsequent holder of this Note the sum of $6,600.00, together with interest calculated at 82.00 °/o ("Note Rate") and any outstanding charges or late fees, until the full amount of this Note is paid. Your interest is calculated on a 360/360 simple interest basis. This means that interest is calculated by dividing the annual Note Rate disclosed above by 360, multiplying that number by the outstanding principal balance, and multiplying that number by the number of days the principal balance is outstanding, assuming that each full month is comprised of 30 days. Your payments will be applied as of the date received, first to accrued interest, then to the principal payment that is due, then to any outstanding charges or late fees, and finally to any remaining principal not yet due. The payment schedule disclosed above is only an estimate and may change in the event you do not make all payments as scheduled. If a payment is not sufficient to pay interest then due, the unpaid interest will be billed again with the new principal and interest on the next scheduled payment. A principal-only payment is known as a "Prepayment.“ We will not treat a payment as a Prepayment unless you previously made all monthly payments of principal and interest and fully paid and satisfied all other obligations under this Note. If you meet these conditions, you may make a full or partial Prepayment. We will apply any partial Prepayment you make to reduce the principal due on the Note as of the date we receive the Prepayment. You may make a full Prepayment or partial Prepayment at any time without penalty. A partial Prepayment will not change the due dates or amounts of your monthly payments, but may reduce the number of payments and the amount of your final payment. We do not intend to charge or collect any interest, charge, or fee that is more than the law allows. If we charge or collect any amount over what the law allows, we will apply the excess first to the unpaid scheduled monthly payments, and we will refund any excess if you have paid in full all amounts you owe under this Note. Any amount applied to unpaid scheduled monthly payments will be treated as a partial prepayment. THE MATURITY DATE (IF NOT PREPAID) OF THIS LOAN IS: May 01, 2025. You will be subject to a fee of $15 if any payment you make is returned for non-sufficient funds. If you fail to make any payment due under this Note, we shall have the right, after a 30~day grace period, to declare this Note to be immediately due and payable. For loans above $10,000, if you file for an assignment for the benefit of creditors, bankruptcy, or for relief under any provisions of the United States Bankruptcy Code, we shall have the right to declare this Note to be immediately due and payable. ' ' For loans in excess of $5,000, in the event that we are required to employ an attorney at law to collect any amounts due under this Note, you will be required to pay the reasonable fees of such attorney to protect our interest or to take any other action required to collect the amounts due hereunder to the extent permitted by law. You agree that all payments made more than (15) days of the due date shall be subject to a late fee of $15.00. The loan fee included in the prepaid finance charge/loan fee disclosed above is fully earned upon loan origination, and is not subject to rebate upon prepayment or acceleration of this Note and is not considered interest. This loan is unsecured and therefore not secured by any of your collateral. We may delay or forgo enforcing any of its rights or remedies under this Note without losing them. You hereby, to the extent allowed by law, waive any applicable presentment, demand for payment, or protest and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. This Note shall take effect as a sealed instrument. This Note will be governed by the laws of the State of California except to the extent governed by federa! law appligable to interstate commerce, including, without limitation, the Federal Arbitration Act, 9 U.S.C. A§A§ 1-6 ("FAA"). You understand that you have previously consented to receive all communications from us, including but not limited to, all required disclosures via electronic mail. This means that all communications from us will be delivered in electronic form. You understand and agree that we may obtain credit reports on you an ongoing basis as long as this loan remains in effect. You also authorize us to report information concerning your account to credit bureaus and to anyone else we believe in good faith has a legitimate need for such information. You understand that, from time to time, we may monitor or record telephone calls between you and us. You hereby expressly consent to have your calls monitored or recorded. You agree that we can contact you using any telephone number(s) that you provide us in this credit application, that you provide to us in the future, or that we get from another source, even if the number is for a mobile telephone and/or our using the number results in charges to you by your mobile service provider. You also agree that we may leave an autodialed or prerecorded message or use other technology to make that contact. You further agree that if you gave us a mobile phone number in your application, or if you later gave us a mobile phone number, or if we get a mobile phone number for you from another source, we may contact you by text message on that mobile phone regarding your account, notwithstanding the fact that there is a possibility that a third party may see our text message to you, and you represent that any mobile phone number you gave us or will give us is your mobile phone number alone. You may cancel this consent by providing us with notice in writing. A married or registered domestic partner applicant may apply for a separate account. As required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations. If we take any adverse action as defined by Section 1785.3 of the California Civil Code and the adverse action is based, in whole or in part, on any information contained in a consumer credit report, you have the right to obtain wifhin 60'days a free copy of your consumer credit report from the consumer reporting agency who furnished us your consumer credit report and from any other consumer credit reporting agency which compiles and maintains files on consumers on a nationwide basis. You have the right as described by Section 1785.16 of the California Civil Code to dispute the accuracy or completeness of any information in a consumer credit report furnished by the consumer credit reporting agency. This Agreement encompasses the entire agreement of the parties, and supersedes all previous understandings and agreements between the Parties, whether oral or written. Any modifications to this Agreement must be made in writing and signed by both parties. ARBITRATION PROVISION WAIVER OF JURY TRIAL AND ARBITRATION PROVISION. Arbitration is a process in which persons with a dispute: (a) waive their rights to file a lawsuit and proceed in court and to have a jury trial to resolve their disputes; and (b) agree, instead, to submit their disputes to a neutral third person (an "arbitrator") for a decision. Each party to the dispute has an opportunity to present some evidence to the arbitrator. Pre-arbitration discovery may be limited. Arbitration proceedings are private and less formal than court trials. The arbitrator will issue a final and binding decision resolving the dispute, which may be enforced as a court judgment. A court rarely overturns an arbitrator's decision. We have a policy of arbitrating all disputes with customers which cannot be resolved in a small claims tribunal, including the scope and validity of this Arbitration Provision and any right you may have to participate in an alleged class action. THEREFORE, YOU ACKNOWLEDGE AND AGREE AS FOLLOWS: For purposes of this Waiver of Jury Trial and Arbitration Provision, the words "dispute" and "disputes" are given the broadest possible meaning and include, without limitation (a) all claims, disputes, or controversies arising from or relating directly or indirectly to the signing of this Arbitration Provision, the validity and scope of this Arbitration Provision and any claim or attempt to set aside this Arbitration Provision; (b) all federal or state law claims, disputes or controversies, arising from or relating directly or indirectly to the Note, the information you gave us before entering into this Agreement, including the customer information application, and/or any past agreement or agreements between you and us; (c) all counterclaims, cross-claims and third-party claims; (d) all common law claims, based upon contract, tort, fraud, or other intentional torts; (e) all claims based upon a violation of any state or federal constitution, statute or regulation; (f) all claims asserted by us against you, including claims for money damages to collect any sum we claim you owe us; (g) all claims asserted by you individually against us and/or any of our employees, agents, directors, officers, shareholders, governors, managers, members, parent company or affiliated entities (hereinafter collectively referred to as "related third parties"), including claims for money damages and/or equitable or injunctive relief; (h) all claims asserted on your behalf by another person; (i) all claims asserted by you as a private attorney general, as a representative and member of a class of persons, or in any other representative capacity, against us and/or related third parties (hereinafter referred to as "Representative Claims"); and/or (j) all claims arising from or relating directly or indirectly to the disclosure by us or related third parties of any non-public personal information about you. 1. You acknowledge and agree that by entering into this Arbitration Provision: (a) YOU ARE GIVING UP YOUR RIGHT TO HAVE A TRIAL BY JURY TO RESOLVE ANY DISPUTE ALLEGED AGAINST US OR RELATED THIRD PARTIES; (b) You ARE GIVING UP YOUR RIGHT T0 HAVE A COURT, OTHER THAN A SMALL CLAIMS TRIBUNAL, RESOLVE ANY DISPUTE ALLEGED AGAINST US OR RELATED THIRD PARTIES; and (c) YOU ARE GIVING UP YOUR RIGHT T0 SERVE AS A REPRESENTATIVE, AS A PRIVATE ATTORNEY GENERAL, OR IN ANY OTHER'REPRESENTATIVE CAPACITY, AND/OR TO PARTICIPATE AS A MEMBER 0F A CLASS OF CLAIMANTS, IN ANY LAWSUIT FILED AGAINST US AND/OR RELATED THIRD PARTIES. 2. Except as provided in Paragraph 5 below, all disputes including any Representative Claims against us and/or related third parties shall be resolved by binding arbitration only on an individual basis with you. THEREFORE, THE ARBITRATOR SHALL NOT CONDUCT CLASS ARBITRATION; THAT IS, THE ARBITRATOR SHALL NOT ALLOW YOU T0 SERVE AS A REPRESENTATIVE, AS A PRIVATE ATrORNEY GENERAL, OR IN ANY OTHER REPRESENTATIVE CAPACITY FOR OTHERS IN THE ARBITRATION. 3. Any party to a dispute, including related third parties, may send the other party written notice by certified mail return receipt requested of their intent to arbitrate and setting forth the subject of the dispute along with the relief requested, even if a lawsuit has been filed. Regardless of who demands arbitration, you shall have the right to select any of the following arbitration organizations to administer the arbitration: the American Arbitration Association http://www.adr.org or JAMS (1- 800-352-5267) http://www.jamsadr.com. The parties may also agree to select an arbitrator who resides within your federal judicial district who is an attorney, retired judge, or arbitrator registered and in good standing with an arbitration association, and arbitrate in accordance with such arbitrator's rules. The party receiving notice of arbitration will respond in writing by certified mail return receipt requested within twenty (20) days. If you demand arbitration, you must inform us in your demand of the arbitration organization you have selected or whether you desire to select a local arbitrator. If related third parties or we demand arbitration, you must notify us within twenty (20) days in writing by certified mail return receipt requested of your decision to select an arbitration organization. If you fail to notify us, then we have the right to select an arbitration organization. The parties to such dispute will be governed by the rules and procedures of such arbitration organization applicable to consumer disputes, to the extent those rules and procedures do not contradict the express terms of this Arbitration Provision, including the limitations on the arbitrator below. You may obtain a copy of the rules and procedures by contacting the arbitration organization listed above. If neither the American Arbitration Association nor JAMS is available or willing to administer the arbitration and the parties cannot agree on a local arbitrator, then an arbitrator can be appointed by a court consistent with Section S of the FAA. 4. Regardless of who demands arbitration, at your request we will pay your portion of the arbitration expenses, including the filing, administrative, hearing and arbitrator's fees (“Arbitration Fees"). Throughout the arbitration, each party shall bear his or her own attorney's fees and expenses, such as witness and expert witness fees. The arbitrator shall apply applicable substantive law consistent with the FAA, and applicable statutes of limitation, and shall honor claims of privilege recognized at law. Any arbitration hearing will be conducted in the federal judicial district of your residence. The arbitrator may decide, with or without a hearing, any motion that is substantially similar to a motion to dismiss for failure to state a claim or a motion for summary judgment. In conducting the arbitration proceeding, the arbitrator shall not apply any federal or state rules of civil procedure or evidence. If allowed by statute or applicable law, the arbitrator may award statutory damages and/or reasonable attorney's fees and expenses. If the arbitrator renders a decision or an award in your favor resolving the dispute, we will reimburse you for any Arbitration Fees you have previously paid. At the timely request of any party, the arbitrator shall provide a written explanation for the award. The arbitrator's award may be filed with any court having jurisdiction. S. All parties, including related third parties, shall retain the right to seek adjudication in a small claims tribunal in the county of your residence for disputes within the scope of such tribunal's jurisdiction. Any dispute, which cannot be adjudicated within the jurisdiction of a small claims tribunal, shall be resolved by binding arbitration. Any appeal of a judgment from a small claims tribunal shall be resolved by binding arbitration. 6. This Arbitration Provision is made pursuan; to a tfansaction involving interstate commerce and shall be governed by the FAA. 7. This Arbitration Provision is binding upon and benefits you, your respective heirs, successors and assigns. This Arbitration Provision is binding upon and benefits us, our successors and assigns, and related third parties. This Arbitration Provision continues in full force and effect, even if your obligations have been paid or discharged through bankruptcy. This Arbitration Provision survives any cancellation, termination, amendment, expiration or performance of any transaction between you and us and continues in full force and effect unless you and we otherwise agree in writing. Except for the waivers of representative actions contained in paragraphs 1(c) and 2, if any of this Arbitration Provision is held invalid, the remainder shall remain in effect. If the waivers of representative actions are held invalid, then this arbitration provision will be deemed null and void. OPT-OUT PROCESS You may choose to opt out of the Arbitration Provision, but only by following the process set-forth below. If you do not wish to be subject to this Arbitration Provision, then you must notify us in writing within sixty (60) calendar days of the date of this Note at the following address: Arbitration Opt-Out, LoanMe, Inc., 1900 S. State College Blvd., Suite 300, Anaheim, CA 92806. Your written notice must include your name, address, account number or social security number and a statement that you wish to opt out of this Arbitration Provision. YOU CERTIFY THAT YOU HAVE READ AND UNDERSTAND THIS ARBITRATION PROVISION AND AGREE TO BE BOUND TO ITS TERMS. You understand and agree that you will receive $3,095.24 of the loan proceeds detailed above and that $3,254.76 of the loan proceeds shall be used to repay your existing loan with Loan Me, Inc., Loan No. 1101935. Payments. You have previously authorized and requested us to initiate an automated clearinghouse or other electronic funds transfer ("EFF") from the bank account identified on your Application (the "Bank Account") to make each payment required hereunder on the day it is due. You also authorize us to initiate an EFT to or from the Bank Account to correct any erroneous payment and, in the event any EFT is unsuccessful, to attempt such payment up to two additional times. You understand that unsuccessful EFl's may result in charges by your bank, and you agree that we are not liable for such charges. You have the right to notice of all transfers of amounts different from your regular payment, but you agree to receive notice 10 days prior to any given transfer only if the amount to be transferred varies by more than $50 from your regular payment amount. You also authorize us to withdraw funds from your account on additional days throughout the month in the event you are delinquent on your loan payments. Your request and authorization for us to initiate EFrs is entirely voluntary, and you may terminate this authorization by notifying us in writing via fax (844-904-7368) or email (customer.service@LoanMe.com) soon enough to allow us a reasonable opportunity to act on your termination (generally at least three business days in advance). You may also terminate your authorization for us to initiate EFfs directly with the financial institution at which your Bank Account is located. By signing this promissory note, you also authorize us to obtain payments from your Bank Account by creating and processing paper checks (each a "Check") in place of initiating any or all of the EFrs described above. Each Check will be in the amount of the payment that would have been initiated as an EFF, and each Check will be deposited by us for processing on or after the same day that the payment would have been initiated as an EFI'. We will type your name in the signature line of each Check, and you agree that your typed name constitutes your authorized signature. You acknowledge that an electronic image of each Check may be created and processed as a substitute check pursuant to the Check 21 Act. If you terminate your EFF authorization as described above, this authorization to create Checks will also terminate. You may also cancel by notifying your financial institution orally or in writing at least three business days before the scheduled date of any transfer. THIS LOAN CARRIES A VERY HIGH INTEREST RATE. YOU MAY BE ABLE TO OBTAIN CREDIT UNDER MORE FAVORABLE TERMS ELSEWHERE. EVEN THOUGH THE TERM OF THE LOAN IS 85 MONTHS, WE STRONGLY ENCOURAGE YOU TO PAY OFF THE LOAN AS SOON AS POSSIBLE. YOU HAVE THE RIGHT TO PAY OFF ALL OR ANY PORTION OF THE LOAN AT ANY TIME WITHOUT INCURRING ANY PENALTY. YOU WILL, HOWEVER, BE REQUIRED TO PAY ANY AND ALL INTEREST THAT HAS ACCRUED FROM THE FUNDING DATE UNTIL THE PAYOFF DATE. YOU CERTIFY THAT NO PERSON HAS PERFORMED ANY ACT AS A BROKER IN CONNECTION WITH THE MAKING OF THIS LOAN. YOU CERTIFY THAT YOU HAVE READ AND UNDERSTAND THE AMORTIZATION SCHEDULE ON THIS LOAN (Click h_erg t0 View) AND ARE ABLE TO REPAY THE LOAN PURSUANT TO ITS TERMS. YOU ARE NOT AWARE OF ANY CIRCUMSTANCES THAT MIGHT CAUSE YOU TO FILE FOR BANKRUPTCY PROTECTION DURING THE TWELVE (12) MONTHS FOLLOWING THE EXECUTION OF THIS NOTE. YOU HAVE READ ALL OF THE TERMS AND CONDITIONS OF THIS PROMISSORY NOTE AND DISCLOSURE STATEMENT AND AGREE TO BE BOUND BY ITS TERMS. YOU UNDERSTAND AND AGREE THAT YOUR EXECUTION OF THIS NOTE SHALL HAVE THE SAME LEGAL FORCE AND EFFECT AS A PAPER CONTRACT. This Loan Is Made Pursuant To The California Finance Lender Law, Division 9 (commencing with Section 22000) of the Financial Code. FOR INFORMATION, CONTACT THE DEPARTMENT 0F BUSINESS OVERSIGHT, STATE OF CALIFORNIA, LICENSE NO. 603-K061.
