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What advantages
does the program offer?
- The preauthorized
draft eliminates preparation of a check and the cost of postage.
- The billing
will not be overlooked or misplaced.
- Your check
will not be lost in the mail.
- The payment
will be made on time, even though you may be traveling, thereby
eliminating late payments and penalty interest.
- All these
features are available at no additional cost to you.
Because this
loan repayment process is more efficient than traditional payment
methods, your money will be working harder for you, the association
member/borrower, as a result of reduced costs to the association.
How do I
sign up for preauthorized electronic installment drafting?
Download and
complete the enclosed authorization form and
send it to Ag New Mexico at P.O. Box 1328, Clovis, NM 88102-1328.
Enclose a voided personal check so that we may properly establish
your account with the appropriate bank numbers. The voided check
will not be returned. Processing of your information may take up
to 30 days. Your payments will be made automatically from that time
forward until you notify us to stop electronic drafting.
Will I continue
to receive a billing statement?
A billing statement
will still be sent for your records. The statement will indicate
that your installment is to be paid through the preauthorized electronic
drafting program. An entry for the electronic draft drawn on your
bank account by Ag New Mexico will appear in your monthly bank statement
as evidence of proof of payment.
When is
my account affected?
The payment
amount applied to your loan (and/or Funds-Held Account) will be
posted on the same day as the funds are withdrawn from your bank.
Can I change
my mind about using preauthorized drafting?
Yes. Notify
Ag New Mexico in writing 30 days in advance of the payment due date,
and a regular billing statement will be sent to you for payment.
You also may stop a preauthorized electronic transfer by notifying
Ag New Mexico at least three business days prior to the transfer
date.
What if
the payment amount changes?
If an interest
rate decrease or increase is approved, you will be notified about
the change on the billing notice. The new installment amount will
become the amount withdrawn from your account.
Can I still
make deposits to Funds-Held or make extra payments?
The installment
amount drafted on your account will be a fixed amount, taking into
consideration variations in the billing rate on each transaction
date. On an optional basis, a constant fixed amount above the installment
amount can be included in the system and deposited to Funds-Held
or additional principal, if desired. You may choose to make a Funds-Held
deposit or special principal payment directly to your local association
at any time. Contact Ag New Mexico to obtain information about your
association's Funds-Held program.
Is this
program available for all loan products?
Preauthorized
electronic installment drafting is not available on any products
that may allow interest-rate adjustments on a daily basis.
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