Document Description – Electronic format only
When Used: This document is used after a borrower has been approved for a Pre-Approved Loan. A Pre-Pre-Approved Loan and Security Agreement and Truth in Lending Disclosure and any additional Truth in Lending Disclosure (Pre- Approved) will also need to be completed prior to the Pre-Approved Express Draft (Site Draft). The Pre-Approved Express Draft (Site Draft) must be used in conjunction with other required Pre-Approved Lending documents.
Purpose: This document allows you to pre-approve borrowers who want to shop for/
purchase a property that can be titled such as a car, truck, boat, or ATV.
The borrower(s) take the Pre-Approved Express Draft (Site Draft) to the dealership so that once the borrower(s) and Dealer have negotiated the purchase, the borrower(s) and Dealer can complete and sign the Pre-Approved Express Draft (Site Draft), agreeing to the terms of the loan. The Dealer must present the Pre-Approved Express Draft (Site Draft) to you for payment rather than deposit it directly at their financial institution. If you want the Dealer to be able to directly deposit a “check”, the Pre-Approved Express Draft (Check) option as described in this User Guide may better suit your needs. This is the only document that the member needs to take to the dealer. Once processed by the credit union, it becomes part of the note and provides the security information for the loan.
Document Numbers: NXX71* 1-3 pieces of property (shown below) NXX73* 1 piece of property only
How Distributed: Distribution by Credit Union to Borrower(s) at time of Preapproval:
This document must be given to the borrower(s).
Distribution by Dealer to Credit Union after document completion:
Once the borrower(s) and the Dealer have reviewed, completed and signed the Pre-Approved Express Draft (Site Draft), the Dealer needs to make a copy of the completed original for themselves. The original should be submitted by the Dealer to the credit union along with any information detailed in the “Instructions to Dealer” section of the Pre-Approved Express Draft (Site Draft) so the Dealer can receive payment.
The credit union should put these documents in the member’s loan file (scan) with other Pre-Approved Lending documentation.
Distribution by Credit Union to Borrower(s) at time of Loan Completion:
While a best practice to also send a copy of the completed Pre-Approved Express Draft (Site Draft) with the Pre-Pre-Approved Express
Page 1 sample
NXX710-e
TO BORROWER:
CUNA Mutual Group 2011, 13 All Rights Reserved
Borrower 1 Signature
NOTICE TO BORROWER: (a) DO NOT SIGN THIS PAPER BEFORE YOU HAVE READ IT OR IF IT CONTAINS ANY BLANK SPACES. (b) YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU SIGN. (c) YOU HAVE THE RIGHT AT ANY TIME TO PAY IN ADVANCE THE UNPAID BALANCE DUE UNDER THE LOAN AND YOU MAY BE ENTITLED TO A PARTIAL REFUND OF THE FINANCE CHARGE.
Signature of Authorized Representative of Dealer Date
X
Date
Borrower 2 Signature
1 Complete the following sections of the Express Draft below.
A) Loan Type you select.
Available Loan Types are:
i) ii)
B) Dealer name and the amount due to Dealer (not to exceed "Approved Limit" amount).
C) Security Offered section.
THE VIN/ID# ON THE EXPRESS DRAFT MUST MATCH THE VIN/ID# OF THE CORRESPONDING PROPERTY PURCHASED.
Each borrower listed must sign or otherwise authenticate, and date the Express Draft.
Give the completed Express Draft to Dealer.
ACCOUNT NUMBER
Pre-Approved Express Draft (Site Draft)
SIGNATURES
Date
X
Type or Print Name of Authorized Representative of Dealer Phone Number
X
EXPRESS DRAFT NUMBER CREDIT UNION FAX
CREDIT UNION CONTACT CREDIT UNION TELEPHONE
will Pay to:
TO DEALER:
BORROWER 1 BORROWER 2
NAME AND ADDRESS NAME (AND ADDRESS IF DIFFERENT FROM BORROWER 1)
(Seal) (Seal)
(Seal)
Page 1 of 2
By signing or otherwise authenticating, all parties agree to the terms and conditions of this Express Draft including those on page 2.
THIS PRE-APPROVED EXPRESS DRAFT WILL NOT BE PAID UNLESS ALL INFORMATION IS COMPLETE.
Loan Type: Approved Limit: $ Date Issued: Void After:
Dollars, subject to final settlement
1 Express Draft cannot exceed "Approved Limit".
2 The following requirements must be met:
3 Deliver a copy of required documentation to Credit Union.*
4 Take all necessary steps to ensure any debt associated with any trade-in property is satisfied.
Deliver required documentation and fees to appropriate parties to perfect Credit Union's lien (Information below).*
*See page 2 for additional Dealer instructions 1 Express Draft cannot exceed "Approved Limit".
2 The following requirements must be met:
3 Deliver a copy of required documentation to Credit Union.*
4 Take all necessary steps to ensure any debt associated with any trade-in property is satisfied.
Deliver required documentation and fees to appropriate parties to perfect Credit Union's lien (Information below).*
*See page 2 for additional Dealer instructions
To create these samples, pull the pdf into an InDesign file and add the circles to a seperate layer. Now make a high res pdf of the form with circle numbers to use as a graphic for the manual. (maz)
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Page 1 instructions
Please refer to the document on the preceding page for the corresponding numbers.
1. Credit Union Information – This space is used to identify the credit union (creditor) as required by Regulation Z, Section 1026.18(a). If your credit union’s name, address, telephone number and logo to print were not imprinted by LOANLINER, enter the applicable information here.
2. Borrower Account Number – Enter the borrower’s account number.
3. Credit Union Contact – Enter the name of the person or department that the Dealer or the borrower(s) should contact at the credit union if they have any questions.
4. Credit Union Telephone – Enter the telephone number of the Credit Union Contact.
5. Credit Union Fax – Enter the fax number the Dealer may use to send all required documents back to the credit union.
6. Express Draft Number – Enter an Express Draft Number assigned to this transaction. If a credit union is using the NXX95* or NXX97*, this Express Draft number has been supplied on the JXX92* check stock. If a credit union is using the NXX71* or NXX73* they can create a series of unique numbers to pull from so that no two Express Draft Numbers are ever the same. If a credit union has purchased the NXX91* or NXX93*, either option may apply depending on the credit union’s check stock.
The Express Draft Number that appears on the Pre-Approved Express Draft (Site Draft) needs to match the Express Draft Number that appears on the Pre-Approved Loan and Security
Agreement and Truth in Lending Disclosure as well as any additional Truth in Lending Disclosure (Pre-Approved) used as part of this loan. The Express Draft Number will be used to track this and other documents that are part of this transaction in your Pre-Approved Draft Log as discussed in the Pre-Approved Lending Planning Guide.
7. Borrower Information – Enter the borrower’s name and address.
8. Loan Type – Enter the Loan Type(s) available to the borrower. If only offering one Loan Type, place “N/A” in second line.
9. Loan Requirements and Qualifications – Insert in this area any requirements related to the pre-approved transaction such as: limitations on the type of property, model year limitations, Loan to Value maximums, or limits on the participating dealerships. Examples include:
“The amount of the Pre-Approved Express Draft (Site Draft) cannot exceed _____% of the purchase price for the property or _____% of NADA retail price on used property.”
“The Pre-Approved Express Draft is valid only with ______ Dealerships in Madison, WI.”
“No Salvage titles.”
“For New Vehicle Loans, model year must be ____ or newer and have mileage of ____ or less;
for Used Vehicle Loans, model year must be ____ or newer and have mileage of ______ or less.”
“Valid on current to 4 year old models only.”
Page 1 instructions (continued)
10. Lien Recording – Enter the lienholder information (i.e. address, Electronic Lien Title (ELT) Code, etc.) 11. Loan Type – The borrower or Dealer should enter the Loan Type for the property being
purchased. If you are only offering the borrower(s) one Loan Type, it is a best practice to preprint the Loan Type as it appears in “A) Loan Types you select” before the Pre-Approved Express Draft (Site Draft) is given to the borrower(s).
12. Approved Limit – Enter the maximum amount the borrower can use to purchase the property.
This amount may be lower than the “Amount Financed” on the corresponding Truth in Lending Disclosure if the borrower wishes to finance additional amounts (Guaranteed Asset Protection, Mechanical Repair Coverage, or the balance of the outstanding loan on a trade-in). Remind the borrower that this amount needs to include the price of the property, taxes, title fee, and any other charges that may be included in the total purchase and any special requirements as listed in Approved Limit area.
13. Date Issued – Enter the date you issue the Pre-Approved Express Draft (Site Draft) to the borrower.
14. Void After – Enter the date after which the Pre-Approved Express Draft (Site Draft) can no longer be used. Ensure the borrower knows they will need to contact the credit union for a new set of Pre-Approved Loan documents if they do not use their Express Draft (Site Draft) prior to this date.
15. Credit Union – Enter your credit union name in this space.
16. Dealer – Borrower or Dealer would enter the name of the Authorized Dealer (the business’s name) from which the property is being purchased. If you know the name of the Dealer the property will be purchased from or wish to limit the borrower to purchasing property from a particular Dealer, it is a best practice to preprint the Dealer’s name before the Pre-Approved Express Draft is given to the borrower(s).
17. Amount in Numbers – Borrower or Dealer would enter the final purchase price of the property being purchased in numbers. This is the amount paid to the Dealer and would include any extra amounts such as tax, title, license, etc.
18. Amount in Words – Borrower or Dealer would enter the final purchase price of the property being purchased in words.
19. Security Offered – Borrower or Dealer should enter all the property’s information including Year, Make, Model, Type and VIN or Identification Number. Be certain to verify the accuracy of the VIN or Identification Number.
20. Borrower(s) Signatures – Enter Borrower 1 Name and Borrower 2 Name (if applicable) in the space immediately below the signature boxes before presenting to the member.
Upon completion, the borrower will sign, or otherwise authenticate, the Pre-Approved Express Draft (Site Draft). By signing as a borrower, they are agreeing to the Pre-Approved Loan and Security Agreement and Truth in Lending Disclosure and the Pre-Approved Express Draft (Site Draft). If you are using the Florida specific version (NFL71*), you may notice that the signature language varies from the sample shown.
Page 1 instructions (continued)
IMPORTANT: If there are “owners of the collateral” other than the borrower(s), they
should sign a separate Security Agreement by using the LOANLINER Security Agreement (MXX88*)
If you are not already using Electronic version MXX888 or newer (e.g. MXX889, MXX88A, etc.) or Paper version MXX88C or newer (e.g. MXX88D, MXX88E, etc.), we have enhanced our
agreement to be used for both the Pre-Approved Lending document suite as well as other lending products. Please ensure that you are using an up to date version of the Security Agreement (MXX88*) if “owners of collateral” other than borrowers are involved in your Pre-Approved Lending loans. Contact the LOANLINER Department if you need to order a supply of the current paper version or to receive an updated electronic image.
21. Authorized Representative of Dealer – The dealership representative / employee whom is the primary contact for the transaction needs to list their name and telephone number in this space.
22. Authorized Dealer Signature – The dealership representative / employee must sign and date here. By signing, the dealership representative / employee agrees, on behalf of the dealer, that all “Instructions To Dealer” will be satisfied, all required documents have been executed, and the original signed and completed Pre-Approved Express Draft (Site Draft) as well as all other required documents will be provided to the credit union.
Note: Consider putting the Pre-Approved Express Draft in a LOANLINER Document Folder (MXX00*) before giving it to the borrower. The borrower will then have a compact, sturdy folder to protect the Pre-Approved Express Draft, and the Dealer will be able to insert all the required support documents when they present the Pre-Approved Express Draft to you for payment.
Page 2 sample
a) Copy of executed purchase agreement;
b) Copy of executed Express Draft;
c) NADA value or MSRP sticker related to Property; and d) Copy of application for title.
SIGNATURE OF BORROWER -- By signing or otherwise authenticating Express Draft as a borrower, you agree to be bound by and acknowledge receipt of the terms and conditions of the Pre-Approved Loan and Security Agreement and Truth in Lending Disclosure and this Express Draft, all of which are incorporated herein by reference, and acknowledge you have complied with "Instructions to Borrower". You also grant us a security interest in the Property described on page 1 pursuant to the terms of the Pre-Approved Loan and Security Agreement and Truth in Lending Disclosure.
SIGNATURE OF AUTHORIZED REPRESENTATIVE OF DEALER -- By signing, or otherwise authenticating, Dealer agrees to be bound by the terms and conditions of Express Draft and represents that all instructions to Dealer have been satisfied and that all required documents have been or will be properly completed and presented with the Express Draft.
Dealer acknowledges and agrees that Express Draft must be presented to Credit Union for payment.
LIEN RECORDING - Dealer must ensure that the necessary documents and fees have been delivered to appropriate parties to perfect the lien of the Credit Union as a valid first priority purchase money security interest in the Property, and there are no other security interests in Property.
ADDITIONAL INSTRUCTIONS TO DEALER The following terms and conditions govern the use of this
Pre-Approved Express Draft ("Express Draft"). All references to "Credit Union," "we" or "us" mean the Credit Union whose name appears on page 1. All references to
"you" mean each person who signs the Express Draft as a borrower. All references to "Property" mean the Property purchased with the Express Draft. All references to "Dealer"
mean the licensed Dealer from which the Property will be purchased.
COMPLETION OF EXPRESS DRAFT - You and an authorized representative of Dealer agree to complete and sign Express Draft in accordance with the instructions on page 1 and page 2.
SECURITY QUALIFICATIONS - You and Dealer promise Property purchased with Express Draft meets the requirements, if any, detailed on page 1.
TERMS AND CONDITIONS
Page 2 of 2
DELIVERY OF DOCUMENTATION - To receive payment, Dealer will deliver a copy of the following to the Credit Union by fax (or other means acceptable to the Credit Union) within a commercially reasonable time or as described in Instructions to Dealer on page 1:
NXX710-e CUNA Mutual Group 2011, 13 All Rights Reserved
To create these samples, pull the pdf into an InDesign file and add the circles to a seperate layer. Now make a high res pdf of the form with circle numbers to use as a graphic for the manual. (maz)
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Page 2 instructions
23. Completion of Express Draft – This paragraph describes the borrower’s and Dealer’s agreement to completely execute the Pre-Approved Express Draft (Site Draft).
24. Security Qualifications – This paragraph describes the borrower’s and Dealer’s promise to fulfill any requirements set on the property purchased as listed on page 1.
25. Signature of Authorized Representative of Dealer – This paragraph describes the Dealer’s agreement to be bound by the terms and conditions of the Pre-Approved Express Draft (Site Draft) and their promise to comply with any and all instructions to Dealer.
26. Additional Instructions to Dealer – This paragraph describes the additional instructions, beyond what is detailed on page 1, which the Dealer must comply with to receive payment for the Express Draft.