Understanding Your Credit Facility Agreement- Part 4

Hello JN Members,

Welcome to part four of Understanding Your Credit Facility Agreement.

In this series, our aim is to assist you to understand what a credit facility agreement is, and break down the different credit products offered by JN Bank, and how they work.

Last month, we discussed Redemption of Mortgage. This month, we will explore the Discharge of Mortgage and Closure of Accounts, as well as Servicing Your Mortgage.

Discharge of Mortgage and Closure of Accounts

JN Bank recommends that all loans be maintained up to maturity, especially where additional loans may be required for home improvement, education, medical and other purposes.

Should you elect to repay your mortgage account before your loan term ends, requests for Statements to Close should be made in writing and the expected date of closure should be stated. Kindly note that only cash, manager’s cheque (except United States Currency cheques) or electronic transfers are accepted for closure of accounts. Please visit www.jnbank.com  for local transfer [Automated Clearing House (ACH)/Real Time Gross Settlement (RTGS)] and Swift Wire Transfer instructions and fees.

On closure of your mortgage, a Discharge of Mortgage document is prepared to initiate removal of the bank’s loan from the title. Your Statements to Close will reflect the costs associated with the Discharge of Mortgage process.

Servicing Your Mortgage

Changes in your finances could affect your ability to maintain payments to the bank, we suggest you contact us, should you be so affected. Be reminded that it is your responsibility to keep abreast of the status of your account.

The bank will notify you of any outstanding payments or arrears on your accounts as below:

1. Monthly Mortgage/Loan Advice issued via email 10 days before due date. If you are not receiving these notices please reach out to us at loanservices@jnbank.com.
2. A JN Bank Representative will call to remind you of outstanding balances if they are one day past due
3. A reminder will also be sent via text message (5 days past due) to the mobile telephone number for you on our records.
4. A notification at 15 days past due will be made via a Payment Reminder sent by mail
5. If your payments are outstanding at 31 days*, a debt collector will call to remind you of outstanding payments.
6. Another notification will be issued at 45 days past due in the form of a Past Due Notice (issued at a cost of J$499.49) sent by mail.
7. At 63 days, a Final Notice will be issued (at a cost of J$1,184.56) by mail to the last known address on record and a debt collector will call to remind you of outstanding payments
8. At 90 days past due, your mortgage file will be transferred to our debt collection agency for commencement of recovery activities.
9. You will be issued a Demand Letter (at a cost of J$1,200), which will also advise you that the account has been transferred to our debt collection agency. This letter will be sent through the mail to the address on our records.
10. If the arrears remain unsettled after 90 days, a Statutory Notice will be issued (at a cost of J$15,000) by mail.

*Kindly note that our debt collections agency manages collection of arrears on accounts that are past due 31 days and over; however, once the account reaches 90 days in arrears, the mortgage file is transferred to the agency to initiate recovery. Additionally, the notice fees stated are subject to change.

We continue to encourage members to keep in contact with us if they are experiencing difficulties. If you default on the payment of your mortgage for 90 days or more after the Final Notice has been issued, the bank reserves the right to sell the security (your property) under its Power of Sale without further notice to you and to recover all monies owed. In addition, the bank is permitted to sue for and to recover any monies outstanding after the sale of the mortgaged property. The bank is prepared to work with members as best as possible to avoid taking any action.

In April’s newsletter, we will continue the focus on your mortgage contract, as we discuss Late Charges, Collection of Fees, and Change in Contact Information.