Loan Payment Terms | East Cambridge Savings Bank |

Loan Payment Terms

External Loan Payment Agreement


A. Introduction
This External Loan Payment Agreement applies to the loan payment service that permits East Cambridge Savings Bank (ECSB) customers (consumers, sole proprietors and a limited number of other business customers) to pay their ECSB loan(s) through the use of our Online Banking service. This Agreement supplements the terms and conditions in the loan documents that govern your loan accounts.  If there is any conflict between this Agreement and the loan documents, the terms and conditions of the loan documents will prevail.  You should read this Agreement carefully to understand how our External Loan Payment Service features work, as well as your rights and obligations if you use these services.

Under this Agreement, “we”, “us,” “our” and the “Bank” denote East Cambridge Savings Bank. “You” and “your” refer to each accountholder that uses this service.

B. Agreeing to this Agreement
By using the External Loan Payment Service (the “Service”), you acknowledge that you have received and understand the terms of this Agreement and agree to be bound by the provisions of this Agreement and any amendments that are made from time to time.  You should retain a copy of this Agreement for your records. If you are unable to print this Agreement, we will mail you a paper copy at your request. You agree that email or other electronic communications that we send you shall be treated as “writing” and shall bind each of us in the same way as a written communication.

C. Accessing the Service
To make a loan payment using the Service, you must have an active ECSB loan account and access to our Online Banking service.  If you have an ECSB checking or savings account, you may transfer funds from your account directly to your ECSB loan without using this Service. To access our Online Banking Service, you must use a browser with 128-bit encryption.

D. Using the Service

1. Loan Payments
(i) Generally.  You agree to be bound by the rules and regulations that govern applicable systems and networks, Including (but not limited to) the rules and regulations the National Automated Clearing House Association (NACHA) and the New England Automated Clearing House (NEACH).  You also agree to be bound by the Electronic Funds Transfer Disclosure and other disclosures as amended from time to time and any other agreements between the yourself and ECSB.


Because of the time required to process transactions, a loan payment that you initiate will not be reflected in the balances of your loan account before the transfer is actually processed and posted in our official records. You agree that we shall have a reasonable opportunity and time to complete the posting of your loan payments. A loan payment must be entered before any applicable Business Day cutoff time for the transfer to be processed and posted on the following business day; any funds transfer that is initiated after the Business Day cutoff time or that is scheduled for a future date that is not a Business Day (including recurring external loan payments that are scheduled for future dates) will be processed and posted no later than the second Business Day, with the exception of line of credit, loan and mortgage transactions, which may take up to three (3) Business Days. Itis your responsibility to schedule each funds transfer far enough in advance to ensure that we have sufficient time to receive and process your transfer request by the time you require the movement of the funds and the posting of the transaction. Please refer to any applicable additional instructional material for additional information on funds transfer options.

For each payment date you attempt to schedule for us to receive your payment (a "Scheduled Payment Date"), the External Loan Payment Service will designate the earliest possible Scheduled Payment Date; the External Loan Payment Service will not permit you to select a Scheduled Payment Date that occurs before the earliest possible Scheduled Payment Date. When scheduling a payment, you must select a Scheduled Payment Date that is no later than the actual date that your payment is due as reflected on your loan statement (the "Due Date"). If the actual Due Date falls on a non-Business Day, you must select a Scheduled Payment Date that is at least one (1) Business Day before the actual Due Date. Scheduled Payment Dates must be prior to any late date or the end of any grace period. You are responsible for any late charge, finance charge, penalty or default or other consequence that may result from your selecting a Scheduled Payment Date later than the Due Date. The External Loan Payment Service may let you choose Scheduled Payment Dates that are not Business Days.


Your payment will be made electronically through the Automated Clearing House (ACH), an electronic banking network operating in the United States.  Rules and regulations governing the ACH network are established by the National Automated Clearing House Association and the Federal Reserve and will apply to your payments.  If you authorize a recurring payment, those payments will continue until the specified end date, unless you cancel the recurring payment.

You may schedule a future-dated payment using the Service, specifying a date on which we are to process the payment, with the limitation that this date cannot be more than 90 calendar days in the future.  If the specified date is not a business day, the payment will be the next business day. You may make recurring payments to your loan accounts, specifying the frequency, number of payments, or an end end date.

(ii) Funding Account.  When you instruct us to make a payment through the Service, you must designate a checking account from which that payment is to be made.  This is called the “Funding Account”.  By using the Service, you agree that we have the right to obtain information regarding your Funding Account from your financial institution, as necessary, to allow us to provide the Service (for example, to resolve a payment posting problem).  By designating the Funding Account, you are representing to us that you either own the Funding Account or are an authorized signer on the Funding Account for purposes of making payments through this Service.

(iii) Payments.  You must provide sufficient information about each payment such as but not limited to, loan account number, amount and Funding Account (the “Payment Instruction”) to authorize us to make the requested loan payment.

When the Service receives a Payment Instruction, you authorize us to debit your Funding Account in the amount of the loan payment and any associated fees.  Funds will generally be withdrawn from the Funding Account on the second business day following the Transaction Date, depending upon the agreements with the financial institution at which the Funding Account is located. The date funds are withdrawn from your Funding Account is referred to as the “Funding Date.” You also authorize us to credit your Funding Account if necessary as a result of overpayments or other credits that may be due to you in connection with this Service.

If sufficient funds are not available in your Funding Account on the Funding Date, the loan payment will be cancelled and you will be responsible for any late payment related charges or fees as described in your loan documents with ECSB.  You will also be solely responsible for any overdraft or related fees charged by the financial institution where the Funding Account is located.

(iv) Canceling Payments.  You may cancel or change a future dated transfer at any time prior to the transmit date. You may cancel or change any loan payment transfer you have initiated or scheduled by following the instructions within Online Banking. You may not cancel or change a funds transfer after the Service has begun processing the transaction and/or after applicable cutoff times. Otherwise, we shall have no obligation to cancel, change, or stop payment on any payment that you have initiated.


 (v) Payment Confirmation.  Confirmation of your loan payment will be sent electronically to the email address you provided during the Online Banking service enrollment  process.  If the email is returned as undeliverable, a confirmation will not be delivered to you. .

E. Contacting the Bank by Electronic Mail (email)
If you send the Bank an email message so that the Bank receives it before 6:00 p.m. on a business day, the Bank will be deemed to have received it the same business day.  Otherwise, the email message is deemed to be received the next business day.  The Bank will generally respond to all emails received on the same business day.  For time-sensitive information, please contact the Bank at 1-866.354.ECSB (3272).  Because normal Internet email transmissions may not be secure, we request that you do not send us or request sensitive information such as account numbers, passwords and payment information via any public email system.

F. Fees
There is a $2.00 loan payment processing fee for each payment using this Service. The loan payment processing fee is added to the amount of the loan payment and this combined amount is debited from your Funding Account and credited to ECSB.  We reserve the right to change fees for this Service from time to time.

G. Account Statements
You will continue to receive regular account statements, depending on the type of account.  External Loan Payment transactions will be itemized on your regular account statements related to your ECSB loan documents, as well as the deposit account statements issued by the financial institution where your Funding Account is located in accordance with its policies and procedures.

H. In Case of Errors or Questions
In Case of Errors or Questions About Your Electronic Transfers, Call or Write us at the telephone number or address listed in this brochure, as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

1.      Tell us your name and account number (if any).

2.      Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information.

3.      Tell us the dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will determine whether an error occurred within 10 business days (20 business days if the transfer involved a new account) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (90 days if the transfer involved a new account, a point-of-sale transaction, or a foreign-initiated transfer) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days (20 business days if the transfer involved a new account) for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, we may not credit your account. Your account is considered a new account for the first 30 days after the first deposit is made, unless each of you already has an established account with us before this account is opened.

We will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation.

You may ask for copies of the documents that we used in our investigation.

Business Days: Monday through Friday
Business Hours: Monday through Friday, 9:00 A.M. - 6:00 P.M.
Excluding Federal Holidays and days the bank is not open for business
Phone: (617) 354-7700

I. Your Liability
You will be liable for unauthorized transactions to the extent allowed by applicable federal and state law and as described in this Agreement.

Tell us AT ONCE if you believe that an external loan payment has been made without your permission.  Telephoning is the best way, if any, of minimizing your possible losses.

You should tell us AT ONCE if your statement shows electronic transfers that you did not make.  If you do not tell us within sixty (60) days after the statement was mailed to you, we are not required to investigate the alleged error or to refund any erroneous electronic transfers to your Account.

J. Our Liability
If we do not complete a transfer to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:

1.      If, through no fault of ours, you do not have enough money in your account to make the transfer.

2.      If you have an overdraft line and the transfer would go over the credit limit.

3.      If the automated teller machine where you are making the transfer does not have enough cash.

4.      If the terminal or system was not working properly and you knew about the breakdown when you started the transfer.

5.      If circumstances beyond our control (such as fire or flood) prevent the transfer, despite reasonable precautions that we have taken.

6.      If the funds are subject to legal process or other encumbrance restricting such transfer.

7.      There may be other exceptions stated in our agreement with you.

K. Choice of Law; Evidence
This Agreement shall be governed by the internal laws of the Commonwealth of Massachusetts.

If we go to court for any reason, we can use a copy, microfilm or microfiche of any document to prove what you owe or that a transaction has taken place, and the copy, microfilm, or microfiche will have the same validity as the original. Any documentation provided to you which indicates that an electronic fund transfer was made shall be admissible as evidence of such transfer and shall constitute prima facie evidence that such a transfer was made.

L. No Signature Required
You agree that we may debit or credit your Funding Account without requiring your signature and without prior notice to you

M. Confidentiality
In order that your privacy may be protected, we will not disclose any information about you or your account to any person, organization, or agency except:

1.      for certain routine disclosures necessary for the completion of a transfer; or

2.      for verification of the existence and condition of your account for a credit bureau or merchant; or

3.      to persons authorized by law in the course of their official duties; or

4.      to our employees, auditors, service providers, attorneys or collection agents in the course of their duties; or

5.      pursuant to a court order or lawful subpoena; or

6.      to a consumer reporting agency as defined in Chapter 93 of Massachusetts General Laws; or

7.      by your written authorization which shall automatically expire 45 days after our receipt of your authorization.

If an unauthorized disclosure has been made, we must inform you of the particulars of the disclosure within 3 days after we have discovered that an unauthorized disclosure has occurred.

N. Amendments
This Agreement may be amended from time to time by the Bank. The Bank shall give you notice of any change, which notice may be provided electronically or in writing.


1.866.354.ECSB (3272)
Routing number: 211370419
The Banking Connectionsm 24-hour banking service: 1.800.869.3423
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