Tau Beta Pi Student Loan Promissory Note (Page 2 of 2) in pdf

THE TAU BETA PI ASSOCIATION

STUDENT LOANS

LOAN CONDITIONS AND PROVISIONS OF NOTE:

Loans of any amount from $25 to $2,500 may be made.

The rate of

interest shall be 6% per annum, not compounded except as otherwise herein

provided.

No person may borrow more than $2,500 under the Student Loan

Program.

Application for a loan must be made on a special form provided by the

Association.

The appropriate one of three application forms-for an

undergraduate student, for a graduate student, or for an initiation-fee

loan-must be used.

The note must be co-signed by an independently responsible person of

legal age, preferably the borrower's parent or guardian, who is a citizen of

the United States.

The member shall execute and submit with the application a promissory

note, on the form provided by the Association.

The amount to be borrowed

shall be re-payable to The Tau Beta Pi Association, Inc., together with

interest thereon as above provided, within not more than three years after

date.

The member, in executing the note, agrees to inform the Secretary-

Treasurer of the Association in writing semi-annually of his or her current

address.

In the event the borrower does not advise the Secretary-Treasurer

semi-annually of his or her current address or does not pay the note at

maturity, he or she agrees to the payment of a penalty of $5.00 for each

$100.00 or part thereof of the indebtedness due at the time the default

occurs, and in such event, the borrower and co-signer shall then owe the

Association the penalty incurred plus the balance on the note with interest.

If this note is not paid at maturity, it shall bear thereafter

interest at the rate of 10% per annum on the unpaid balance until the entire

indebtedness is paid in full.

The borrower may re-pay on the indebtedness at any time or times in

multiples of $10.00.

The final payment shall include any balance on the

principal and all interest and penalty, if any.

An extension of the note

may be secured upon written approval of the Executive Council of the

Association, provided application is made prior to maturity of the note, and

accrued interest and penalty, if any, are paid.

An extension, if granted,

shall not be for a period of more than one year and the rate of interest

during said extension period shall be 10% per annum, not compounded, and re-

payment shall be made at least quarterly during the period of extension.

The borrower and co-signer waive presentment, protest, demand, notice

of protest, dishonor and nonpayment of this note and expressly agree that if

this note is placed in the hands of an attorney-at-law for collection or has

to be sued on, they will pay all costs of collection, including a reasonable

attorney's fee incurred in the collection of this note.

The obligation of

the borrower and co-signer shall be joint and several.

This note is made in Tennessee and shall be interpreted under the laws

of the State of Tennessee.

Where in this instrument the word "Association"

appears, it shall be construed and be intended to mean The Tau Beta Pi Association, Inc.

Tau Beta Pi Student Loan Promissory Note Page 2

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