BUSINESS READY CREDIT(SERVICE XXXX) AGREEMENT BUSINESS &
PROFESSIONAL
Maximum Credit
$250000
Name and Address of Borrower
SMA VIDEO, INC.
000 XXXXXX XX XXX XXXXXXXX
XXX XXXX XXXX, XX 00000 Account#
In this Agreement, the words You, Your and Yours mean the undersigned
Borrower(s), jointly and severally if more than one. The words We, Us and Our
mean Citibank, N.A.
Using Your Business Ready Credit Account: We have agreed to make credit
available to you through a Business Ready Credit Account ("Account"), which you
can use for any legal business or professional purpose. You may borrow up to the
maximum credit by using the checks we will furnish you. You may use these checks
just as you would any regular checks. Limitations will apply on the amount and
frequency of cash borrowed at an automated teller machine by using your
Citicard(Registered). We may refuse to pay your check or make additional loans
to you from your Account if you have reached your credit limit or upon any
other reasonable circumstance, including without limitation a material adverse
change in your financial condition, without incurring liability to you or
others. You agree that we may impose our current charge for returning such
checks. The first use of your Account means that you have accepted the terms
of this agreement. You agree to maintain a Citibank business checking account
(#0000000) while this Account remains open, from which all payments required
to be made by this agreement will be deducted.
Repayment Schedule: You agree to repay us your Business Ready Credit loans plus
interest and any other charges, as provided for in this agreement. Unless we
cancel your right to obtain loans under this agreement, you will only have to
pay accrued interest and charges (but not principal) each month. If we cancel
your right to obtain loans under this agreement, you agree to repay the
outstanding principal balance in twenty-four (24) equal consecutive monthly
installments, together with accrued monthly interest and any other charges,
beginning approximately thirty (30) days after cancellation. You agree that your
monthly payment will be automatically deducted from the Citibank business
checking account which you agree to maintain with us. We will send you monthly
statements that will show transactions in your Account, your new balance, and
the amount of your next payment and due date. You may make additional payments
at any time by sending us a check to the address listed on your statement, or by
making payment transfers using your Citicard(Registered) through our telephone
customer service or at any Citicard Banking Center(Registered) or branch.
Interest: You agree to pay monthly interest on the outstanding principal balance
at an annual rate of the Prime Rate as published in The Wall Street Journal from
time to time plus 1 %.
We compute interest this way: We start with the principal balance on the first
day of the billing cycle. Each day of that period we add any loans made and
subtract any payments and other credits applied to principal. We will take the
principal balance outstanding on each day of the billing cycle and multiply that
amount by the daily periodic rate to arrive at a daily interest amount. Daily
interest charges are totaled at the end of the billing cycle to arrive at the
monthly interest charge.
Late Charges: If you do not pay the minimum payment within 15 days after the due
date, you agree to pay a late charge of the lesser of 5% of the principal and
interest past due, or $25.
Maximum Charges: We do not intend to charge, and you will not be required to
pay, any interest or other fees or charges in excess of the maximum permitted by
applicable law. Payments in excess of the maximum will be refunded to you or
applied to unpaid principal.
Default: You will be in default if any of the following should occur:
1. There are insufficient available funds in your checking account to make the
minimum monthly payment when due, or you otherwise fail to make the proper
payment when due, or otherwise fail to comply with the terms of this
agreement;
2. Any other creditor tries by legal process to take money or other property
of yours in our possession or under our control;
3. There is any seizure of, or a receiver is appointed for, any of your
property, or the property of any guarantor;
4. Any proceeding under any bankruptcy or insolvency law is commenced by or
against you or any guarantor;
5. Any financial statement you give us is false or misleading in any way;
6. An individual borrower or any guarantor of this obligation shall either die
or cease to be an officer, director or partner in your business;
7. Your business is sold or there is a cessation of your day-to-day
operations;
8. There is a default in the terms or conditions of any other contract with us
or our affiliates, or with any other financial institution;
9. Any required life insurance is canceled without our consent;
10. You fail, after demand, to provide us with your most recent federal tax
return and that of any guarantor, and/or your most recent financial
statement;
11. In our sole good faith opinion, there is a material adverse change in your
financial condition, your business operations or the financial condition of
any guarantor;
12. We, in good faith, believe that our security is impaired or our credit risk
is increased;
13. You close your checking account with us; or
14. We close your checking account.
Upon default, we can, at our option, without further notice or demand, refuse to
pay any outstanding checks and deny more credit to you under this agreement, and
the outstanding Account balance shall, at our option, immediately become due and
payable. After default, you agree to continue to pay interest at the rate you
would be paying if you were not in default, until your Account is paid in full.
Annual Fee: You agree to pay an annual fee of $ 2500. Payment of the annual fee
is due upon the signing of this agreement and annually thereafter until your
right to obtain loans is canceled, or the Account is closed. The annual fee may
be deducted from your checking account. Failure to pay the annual fee when due
shall result in the automatic cancellation of your right to obtain loans under
this agreement.
Account Reviews: We may conduct reviews of your Account from time to time to
determine your continued eligibility to obtain loans. You and any guarantor of
this Account agree to furnish such financial documents as we may request,
including without limitation financial statements and/or the most recent federal
income tax returns, each signed as appropriate by you and any guarantor.
Credit Life Insurance Election Form Citibank, N.A.
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Not for consumer loans After signing, Borrower should retain one copy
Credit life insurance provides additional protection for your loan in the event
of death. If the Borrower is a corporation or partnership, the Proposed Insured
Party must be a natural person who is a guarantor. If credit life insurance is
required by Citibank, N.A. for your loan, the Proposed Insured Party may assign
an existing policy, or procure and assign a new policy to Citibank, N.A. or may
elect credit life insurance below. The Proposed Insured Party must
satisfactorily complete and sign the Group Credit Insurance Application and be
under the age of 70. For Business Ready Credit and Business Checking Plus,
insurance coverage will terminate when the Proposed Insured Party reaches the
age of 70.
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Borrower Name: SMA VIDEO, INC.
Address: 000 XXXXXX XX XXX XXXXXXXX, XXX XXXX
XXXX, XX 00000
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Proposed Print name of Proposed Insured Party
Insured Party ____________________________________________
(If Borrower is corporation, must be active officer; if partnership, must be
active general partner) Relationship to Borrower:
( ) Active Officer ( ) Partner ( ) Member/Manager
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FIRST CITICORP LIFE INSURANCE COMPANY
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Home Office: Xxx Xxxxx Xxxxxx, 00xx Xxxxx
Xxxx Xxxxxx Xxxx, XX 00000
GROUP CREDIT INSURANCE APPLICATION
Plan Desired
(X) Single Life - One Proposed Insured Party
Proposed Insured Party
----------------------
Yes No
1) Have you, during the past 12 months, been
diagnosed or under the care of a doctor or
other practitioner for any of the following:
high blood pressure, diabetes, cancer or
tumor, heart attack, seizures, or stroke;
genitourinary, joint, muscle, or digestive
system disorders; arthritis, back or neck
impairments; Acquired Immunodeficiency
Syndrome (AIDS) or AIDS Related Complex (ARC),
and ( ) ( )
2) Have you, during the past 12 months, been
confined in a hospital or other institution
due to any condition of the following: brain,
nervous system, liver, kidney and lungs? ( ) ( )
By signing below you state that: (1) Your Birth Date is correctly entered below.
(2) You understand insurance will not be provided if you are age 70 or over and
you understand insurance will stop when you reach age 70. (3) You agree to pay
the costs of, and have applied for, the Credit Insurance marked above. (4) Your
responses are complete and true to the best of your knowledge and belief.
If you have answered "YES" to either of the questions listed above, you CANNOT
BE INSURED for Credit Insurance and this Form will not be considered further.
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Date Birth Date Proposed Insured Party's Signature
PERSONAL INFORMATION NOTICE: Any information you give us about yourself will be
treated as confidential. We will use that information solely to underwrite your
insurance. We will not share it with anyone unless you first authorize it in
writing.
40-5803(10-94)c
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Election If the Borrower is a partnership or corporation, the Proposed
Insured Party is a guarantor and an active general partner or
officer of the Borrower. The Proposed Insured Party has completed
and signed the above Group Credit Insurance Application.
CHOOSE: _____ The undersigned hereby elects credit life insurance.
x The undersigned does not elect credit life insurance.
_____
Cancellation of election: You may cancel within the next seven
business days by notifying, in writing, Citicorp Data Systems, Inc.
at 0000 Xxxxx Xxx. 000, Xxx Xxxxxxx, XX 00000
Proposed
Date ______________ Insured Party __________________________
Signature
(Also, if Borrower is corporation or
partnership, sign below)
Borrower: SMA VIDEO, INC. By:
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(Print exact name)
Name: Xxxxx Satin Title: Executive Vice President/
Secretary
(See reverse side) PBL 502 (L) * Rev. 9-91
SIGNATURE CARD
Business Ready Credit (Service Xxxx)
TITLE OF ACCOUNT
----------------
SMA VIDEO, INC.
Address Account/Loan No.
000 XXXXXX XX XXX XXXXXXXX
XXX XXXX XXXX, XX 00000
Telephone No. Taxpayer I.D. No.
000000000
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Type or Print and Titles Signature
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NAME- /s/ Xxxxx Satin Xxxxx Satin
TITLE- Secretary EVP/Secretary
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NAME- /s/ Xxxxxxx Xxxxxxxxx Xxxxxxx Xxxxxxxxx
TITLE- President President
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I HEREBY CERTIFY TO CITIBANK, THAT THE 2 SIGNATURES APPEARING ON
THIS CARD ARE AUTHENTIC. -------
(NUMBER)
/s/ Xxxxx Satin
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SCERETARY OR GENERAL PARTNER
