Promissory Note Transform Credit Inc. Credit Contract for Parris Butler Borrower Name; Parris Butler Borrower Address; 1540 W Kavanagh Ave, Tracy, 95376 Creditor Name; Transform Credit Inc. Creditor Business Address; Transform Credit Inc 332 S Michigan Ave, Floor 9 Chicago, Illinois, 60604 ▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂ Your loan will be paid out to your Guarantor, who we will assign for you. The guarantor will be liable for the principal of the loan and we will expect them to repay any principal portion of the monthly repayment, or repay the balance in full if the loan is canceled. ▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂ FEDERAL TRUTH-IN-LENDING DISCLOSURES ANNUAL PERCENTAGE RATE (APR); **26.00%** The cost of your credit as a yearly rate. FINANCE CHARGE; **$293.20** The dollar amount the credit will cost. Amount Financed; $650.00 The amount of credit provided to you or on your behalf. Total of Payments; $943.20 The amount you will have paid after you have made all the payments as scheduled, including the amount financed of $650.00 which is to be repaid by your guarantor. Your payment schedule will be: Number of Payments; 36 Amount of Payments; $26.20. Each month you will only pay the interest that has been charged that month, capped at $5. The guarantor will repay any remaining principal portion of the monthly repayment after your interest payment has been made. When Payments are Due; Monthly, starting 30 days after the loan is disbursed to your guarantor. Prepayment: You have the right to pay off this agreement early. If you do so, you will not have to pay a penalty. Other Terms: Please read this agreement for additional information on security interests, nonpayment, default, and our right to require repayment in full before the scheduled maturity date. All numerical disclosures except the late payment disclosure are estimates. The above is an estimate based on your first payment being 30 days after your loan is disbursed to your guarantor and your monthly payments being paid exactly a month apart. ▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂▂ Itemization of the amount financed: Amount disbursed to your guarantor; $650.00 Loan proceeds paid on your account; $0.00 Amount paid to public officials; $0.00 Amount paid to others; $0.00 Prepaid finance charge; ($0.00) = Amount financed: $650.00 AGREEMENTS (1) DEFINITIONS: Anyone who signs this instrument will be referred to herein as “I” or as “Payor.” The Initial Payee is Transform Credit, Inc. I understand that the Initial Payee may transfer this Note. The Initial Payee or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the “Lender.” No obligation or rights I possess hereunder can be assigned or transferred without the prior written consent of the Lender. (2) PROMISE TO PAY: I promise to pay to the order of Lender, U.S. $650.00 (this will be called “principal”), plus interest thereon, from the date the loan is disbursed to my guarantor until paid in full as provided herein unless my guarantor pays such amounts on my behalf. This promise is guaranteed by the Guaranty and Indemnity provided by my guarantor. I acknowledge and agree that Lender will hold, and I hereby instruct Lender to hold, all funds disbursed in exchange for my promise to pay, on behalf of the corporate guarantor. All payments due under this Note shall be made in U.S. currency. I will make all payments under this Note in the form of check or money order, electronic funds transfer, or by credit or debit card payment as contemplated under Section 4. If any check or other instrument received by the Lender as payment under this Note is returned to the Lender unpaid, the Lender may require that any or all subsequent payments due under this Note be made in one or more of the following forms: (a) electronic funds transfer; (b) credit or debit card; (c) money order; or (d) bank check, treasurer’s check or cashier’s check, provided any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity. (3) ASSIGNING A GUARANTOR: If no personal Guarantor is assigned to my application at the time of signing this contract, I will be appointed a Guarantor by the Lender. This Corporate Guarantor may be replaced by a Personal Guarantor at any time during the loan term. This alteration will be made at the Lender’s discretion and my chosen Guarantor must meet the Lender’s criteria and must sign a separate Guarantor Agreement. (4) PAYMENT AUTHORIZATION: I will give the Lender consent to collect my monthly payments, detailed in this contract, from my credit or debit card and bank account via ACH. I give the Lender, and its authorized loan servicer(s), consent to use any payment details that I provide, to collect each full monthly payment that I owe until my debt hereunder is paid. I also authorize the processing of credits where necessary, including for the correction of debit processing errors. I acknowledge and agree that any agreement to use a debit card or electronic funds transfer to make my monthly payments is not a condition of this extension of credit. I can cancel this authorization at any time by notifying the Lender at least three (3) business days before my next scheduled payment or by informing an agent that I do not agree to these terms of electronic recurring payments prior to my loan payout. I understand that any cancellation of this authorization, or update to my account information, will be effective three (3) business days after such cancellation or update is received by Transform Credit Inc. If a payment varies from those under this authorization, I understand that the Lender will inform me at least ten (10) days before each debit and that this notice will provide the date and amount of the payment, unless otherwise agreed. (5) INTEREST: I will pay interest at a yearly rate of 26.00% calculated on the basis of 365 days a year. Interest will be charged on unpaid principal until the full amount of principal and any interest owing has been paid. The interest rate required by this Section 5 is the rate I will pay both before and after any default described in Section 7 and 11 of this Note. (6) PAYMENTS: (A) Time and Placement of Payments My first interest payment will be 30 days from the Lender disbursing the loan to my guarantor. I will make subsequent payments on the same day of each following month. When the monthly payment date is not a Business Day, the payment will be due, without premium or penalty, on the next Business Day thereafter. “Business Day” means a day on which most banks are open and the Initial Payee is open for business. I will make these payments every month until I have paid all of the principal and interest and any other charges, described below, that I may owe under this Note. If, at the end of the loan, I still owe amounts under this Note, I will pay all of those amounts, in full, on that date. (B) Amount of Monthly Payment Each of my monthly payments will be in the amount of U.S. $26.20. Each monthly payment will be applied to interest before principal. By accepting partial payment of any payment, Lender does not waive the right to collect the remainder of said payment or to require at any future time payments sufficient to bring my obligations under this Note current. Acceptance of any payment after maturity, or waiver or condonation of any breach or default hereunder shall not constitute a waiver of any later or other breach or default, and failure of the Lender to exercise any of its rights hereunder shall not constitute waiver of such rights. No principal amount repaid may be reborrowed. (C) Receipt of Payments Payments are deemed received by the Lender when received at the location designated in this Note or at such other location as may be designated by the Lender in accordance with the notice provisions in Section 20. Payments in immediately available funds received by Lender in the place designated for payment prior to 5:00 p.m. Eastern Standard Time on a Business Day shall be credited prior to the close of business on the Business Day received. Payments received by Lender on a day other than a Business Day or after 5:00 p.m. Eastern Standard Time on a Business Day shall not be credited until the next succeeding Business Day. (D) Partial Payments The Lender may accept any payment or partial payment insufficient to bring my obligations under this Note current. No offset or claim which I might have now or in the future against the Lender shall relieve me from making payments due under this Note or performing the covenants and agreements set forth in this Note. (E) Application of Payments or Proceeds Except as otherwise described in this Subsection (E), all payments accepted and applied by the Lender shall be applied first to interest due under this Note and then to principal due under this Note. Such payments shall be applied to each monthly payment in the order in which it became due. Any remaining amounts shall be applied first to non-principal amounts due under this Note and then to reduce the principal balance. If more than one monthly payment is outstanding, the Lender may apply any payment received from me to the repayment of the monthly payments if, and to the extent that, each monthly payment can be paid in full. To the extent that any excess exists after the payment is applied to the full payment of one or more monthly payments, such excess may be applied to any non-principal amounts due. (F) Unconditional Payment I agree to pay all principal, interest and any and all other amounts which become payable under this note absolutely and unconditionally, and without any abatement, postponement, diminution or deduction, and without any reduction for counterclaim or setoff. (7) FAILURE TO PAY AS REQUIRED: DEFAULT: I will be in default if (i) I have an outstanding amount of one full payment or more which has remained unpaid for more than 10 days after the scheduled or deferred due date, (ii) I fail to observe or perform any other covenants or duties contained in this Agreement if the failure materially impairs the condition, value or protection of Lender’s right in any collateral securing this Agreement, or materially impairs my ability to pay any of the obligation when due. LENDER’S RIGHTS IN THE EVENT OF DEFAULT: In the event of default and, if I have the right to cure the default (pursuant to applicable state law), I fail to cure the default within 20 days after I am given notice of the default, the lender may declare the whole outstanding balance due under this agreement payable at once and proceed to collect it, including commencing legal action and repossessing collateral. (8) PAYMENTS BEFORE THEY ARE DUE: I have the right to make payments of principal at any time before they are due. A payment of principal only is known as a “prepayment.” When I make a prepayment, I will tell the Lender that I am doing so. A prepayment of all unpaid principal is known as a “full prepayment.” A prepayment of only part of the unpaid principal is known as a “partial prepayment.” I may make a full prepayment or a partial prepayment at any time without paying any penalty. The Lender will use all of my prepayments first to pay any unpaid interest and other non-principal amounts that I owe and then to reduce the amount of principal that I owe under this Note. Partial prepayments shall be applied by Lender to the payment of unpaid principal owed on this Note at the time of the partial prepayment and all remaining scheduled payments dues under this Note shall continue to be paid when due unless I instruct Lender otherwise. If I make a full prepayment, I must inform the Lender of the date on which I plan to do so. (9) CANCELLATION I may cancel the Loan at any time by notifying the Lender. If I choose to cancel the Loan, the loan principal balance will become payable immediately and I must settle this balance and all interest balances (as well as other fees) that are due unless my Guarantor settles these balances on my behalf when they become due. (10) WAIVERS: EXCEPT AS SPECIFICALLY PROVIDED TO THE CONTRARY, I WAIVE AND RELINQUISH TO THE FULLEST EXTENT PERMITTED BY LAW PRESENTMENT FOR PAYMENT, DEMAND, NOTICE OF NONPAYMENT OR NONPERFORMANCE, PROTEST, NOTICE OF PROTEST, NOTICE OF INTENT TO ACCELERATE, NOTICE OF ACCELERATION OR ANY OTHER NOTICES OF ANY OTHER ACTION. I WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW AND RELINQUISH, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHTS TO THE BENEFITS OF ANY MORATORIUM, REINSTATEMENT, MARSHALING, FORBEARANCE, VALUATION, STAY, EXTENSION, REDEMPTION, APPRAISEMENT, EXEMPTION AND HOMESTEAD NOW OR HEREAFTER PROVIDED BY THE CONSTITUTION AND LAWS OF THE UNITED STATES OF AMERICA AND OF EACH STATE THEREOF, BOTH AS TO MYSELF, AND IN, AND TO ALL MY PROPERTY, AGAINST THE ENFORCEMENT AND COLLECTION OF THE OBLIGATIONS EVIDENCED BY THIS AGREEMENT. “Right to presentment” means the right to require the Lender to demand payment of amounts due. “Right to notice of dishonor” means the right to require the Lender to give notice to other persons that amounts due have not been paid. (11) EVENTS OF DEFAULT: Except as expressly prohibited by applicable law, and separate to the events outlined in provision (7), I will also be in default under this Note and the Lender can require immediate payment of the entire outstanding balance, plus accrued interest, if; - I commit fraud or make a material misrepresentation, whether by action or omission, in connection with this Note or the transaction of which it is a part. The transaction referred to in the preceding sentence includes, without limitation, the negotiation and application process that resulted in the forbearance described in Section 10. - I fail to meet the repayment terms set forth in this Note or any other covenant or agreement contained herein is breached. - I file a petition for bankruptcy or a proceeding regarding bankruptcy, receivership, or insolvency is commenced against me or my property; - I agree with any other creditor to pay less than the full amount that I owe to that creditor; - I die or am declared legally incompetent; - My guarantor cancels the Guaranty and Indemnity. The foregoing events each will be known as an “Event of Default” and will be known collectively along with the events outlined in provision (7), as “Events of Default” if the event materially impairs the lender’s right in any collateral or materially impairs my ability to pay any of the obligation when due. (12) RECOURSE, REMEDIES, ACCELERATION, ATTORNEY FEES, SET OFF: I acknowledge that my obligations under this Note are full recourse obligations and that I am liable for full payment of the amounts that I am required to pay under this Note. If the Lender sues me for default under this agreement, they may request an award of statutory costs and attorney fees as permitted by applicable law. If their request is granted, I will be required to pay these fees. Other actions that Lender may take after any Event of Default include; - Obtaining payment from my Guarantor; - Reporting the default to consumer reporting agencies who supply information to other credit providers; - Taking court action against both me and/or my Guarantor; and - Exercising any of Lender’s other rights, powers, recourses and remedies under this Note, or at law or in equity. The Lender can delay or refrain from enforcing any of its rights under this agreement, or at law or in equity, without losing them. If the Lender elects not to exercise or enforce any of its rights, such election shall not be deemed a waiver of any of those rights. For example, the Lender can extend the time for making some payments without extending others. Similarly, even if the Lender does not require me to pay immediately in full at a time when I am in default, the Lender still shall have the right to do so if I am in default at a later time. No such failure to accelerate the indebtedness shall be construed as a novation of this Note, as a reinstatement of the indebtedness evidenced by this Note, or as a waiver of the Lender’s right to insist on strict compliance with the terms of this Note. No extension of the time for the payment of this Note or any installment due hereunder, made by agreement with any person now or hereafter liable for such payment, shall operate to release, discharge, modify, change or affect my original liability under this Note, either in whole or in part, unless the Lender expressly agrees otherwise in writing. (13) INTERSTATE COMMERCE, GOVERNING LAW, WAIVER OF JURY TRIAL AND ARBITRATION PROVISION, AND ENFORCEABILITY: I agree that this Note involves interstate commerce for all purposes. This Note will be governed by the laws of the State of CA, except that the separate binding Waiver of Jury Trial and Arbitration Provision is governed by the Federal Arbitration Act. The Waiver of Jury Trial and Arbitration Provision will be signed separately and applies to this Note and the Guaranty by the guarantor. I agree that service of process upon me may be made by certified or registered mail, return receipt requested, at my address, as specified above. Nothing shall limit the Lenders right to serve process in any other way permitted by law. No interest, charge, or receipt by us is intended to exceed lawful amounts. If a law which sets maximum charges is finally interpreted so that the interest or other charges collected under this note exceed the permitted limits, any such charge shall be reduced by the amount required to fall within the permitted limit. Any amount already collected from me which exceeded permitted limits will be refunded to me. The Lender may choose to make this refund by reducing the principal I owe under this Note or by making a direct payment to me. If a refund reduces principal, it will be treated as a partial prepayment. (14) CLASS ACTION WAIVER, MASS ACTION WAIVER: I AGREE TO CONDUCT ANY DISPUTE RESOLUTION PROCEEDING ON AN INDIVIDUAL BASIS ONLY. I WAIVE MY RIGHT TO DO ANY OF THE FOLLOWING: A. SERVE AS A PRIVATE ATTORNEY GENERAL OR IN A REPRESENTATIVE CAPACITY; B. BE IN A LAWSUIT OR DISPUTE WHERE THIS IS MORE THAN ONE PLAINTIFF OR PETITIONER, UNLESS THE ADDITIONAL PLAINTIFF OR PETITIONER IS A CO-BORROWER, A CO-OWNER, GUARANTOR OR ANOTHER PERSON THAT WOULD BE DEEMED AN "INDISPENSABLE PARTY" TO SUCH PROCEEDING; C. BRING OR BE A CLASS MEMBER IN A CLASS ACTION OR CLASS ARBITRATION; D. JOIN, COMBINE, OR CONSOLIDATE (OR PERMIT TO BE JOINED, COMBINED, OR CONSOLIDATED) A DISPUTE I HAVE WITH A DISPUTE INVOLVING OR BROUGHT BY ONE OR MORE OTHER CONSUMERS (OR THEIR GUARANTORS) OR BORROWERS OF THE LENDER; AND E. PARTICIPATE IN ANY WAY IN ANY DISPUTE RESOLUTION PROCEEDING THAT IS A "MASS ACTION." IF ANY WAIVER OR ANY PART OF ANY WAIVER BY ME CONTAINED IN THIS PARAGRAPH IS PROHIBITED BY LAW, LENDER AND I AGREE THAT THIS PROVISION IS SEVERABLE, DOES NOT AFFECT ANY OTHER PROVISION OF THIS NOTE, AND I SHALL NOT BE ENTITLED TO RECOVER ANY ATTORNEYS' FEES OR COSTS ASSOCIATED WITH MY PURSUIT OR PARTICIPATION IN THE CLASS ACTION, REPRESENTATIVE ACTION, OR "MASS ACTION," EVEN IF SUCH FEES OR COSTS MAY BE AWARDED TO ME UNDER ANOTHER SECTION OF THIS NOTE. (15) PERSONAL LIABILITY, JOINT AND SEVERAL LIABILITY: I am fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. If more than one person signs this Note, each of us shall be jointly and severally liable to keep all of the promises herein. (16) TIME IS OF THE ESSENCE: Time is of the essence with respect to all provisions of this Note. (17) HEADINGS: The headings and titles in this Note are inserted for convenience of reference only and shall in no way alter, modify, define, limit, amplify or be used in construing the text, scope or intent of any provisions hereof. (18) SEVERABILITY: In the event that any provision of this Note is limited, restricted, prohibited or unenforceable under applicable law, such provision shall be construed and enforced as if it had been more narrowly drawn so as not to be in conflict with applicable law. The validity, legality and enforceability of the remaining provisions of this Note shall not in any way be affected or impaired thereby. If any part of this Note is determined to be invalid, then the Lender may enforce the remainder of this Note as if the invalid provision did not exist, to the extent not prohibited by California state law. The Lender shall be afforded the full benefit of all of my waivers and contractual agreements made in connection with this Note which are permitted to be given under applicable law. (19) GUARANTEE: My repayment obligations under this Note are guaranteed by a separate Guaranty & Indemnity with the guarantor named therein. The guarantor will be liable for the principal of the loan and will be expected to repay any principal portion of the monthly repayment, or repay the balance in full if the loan is canceled. (20) NOTICES AND COMMUNICATIONS: I shall promptly (within seven days) notify the Lender of any changes to my home address, name, email address, payment card information, or any phone number that the Lender uses to contact me. If the Lender specifies a procedure for reporting a change of such information, then I only shall report a change through that specified procedure. There may be only one designated notice address under this Note at any one time. Any notice to the Lender shall be given by delivering it or by mailing it by first class mail to the Lender’s address to which I send my monthly payments, unless the Lender has designated another address by notice to me. Any notice in connection with this Note shall not be deemed to have been given to the Lender until actually received by the Lender. If any notice required by this Note is also required under applicable law, the applicable law requirement will satisfy the corresponding requirement under this Note. If the Lender needs to contact me, it will send all notices, information and statements to my last known address, which shall be the address shown on this Note unless the Lender knows that I have moved. The Lender may send some notices to me via email, text message or phone instead. I hereby expressly consent to be contacted for such purposes at any email address or telephone number that I may provide to the Lender and acknowledge and agree that any such communications may be placed with the assistance of an automated telephone dialing system or other automated technology. Any notice to me in connection with this Note shall be deemed to have been given to me when mailed by first class mail or when actually delivered to my notice address if sent by other means. The Lender may record or monitor telephone calls with me. (21) CHANGE TO THIS NOTE: The Lender may make reasonable and proportionate changes to this Note to take account of: - Market conditions; - Changes in the cost of providing this service to me; - Changes, or predicted changes, in legal or other requirements which affect the Lender; and/or - Any changes to the Lender’s system or product development. However the Lender will not change the interest rate, day of repayment, term, or the amount I pay each month, without me specifically requesting that. Lender will give me at least 30 days notice (by putting a message in my monthly statement, or by sending me a separate written notice or e-mail) of any change, unless it is a change that is to my advantage. If the change is to my disadvantage, I may, at any time during 60 days starting from the date the Lender gives me notice, close my account by paying the Lender the debt that I owe at that time. I will not have to pay any extra interest or charges for doing so. By executing this Note, I acknowledge that I have read this Note and that I agree to its terms and conditions. (22) FOR COVERED BORROWERS: Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36 percent. This rate must include, as applicable to the credit transaction or account: The costs associated with credit insurance premiums; fees for ancillary products sold in connection with the credit transaction; any application fee charged (other than certain application fees for specified credit transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account). I may or my attorney may file a complaint with the commissioner. (23) NOTICE REQUIRED BY FEDERAL REGULATION; NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER. Loans made or arranged pursuant to a California Finance Lenders Law License. License Number 60DBO-108183. Married applicants may apply for a separate account. As required by law, I am hereby notified that a negative credit report reflecting on my credit record may be submitted to a credit reporting agency if I fail to fulfill the terms of my credit obligations. This loan is made pursuant to the California Finance Lenders Law, Division 9 (commencing with Section 22000) of the Financial Code. FOR INFORMATION CONTACT THE DEPARTMENT OF BUSINESS OVERSIGHT, STATE OF CALIFORNIA NOTICE TO CUSTOMER (a) DO NOT SIGN THIS IF IT CONTAINS ANY BLANK SPACES. (b) YOU ARE ENTITLED TO AN EXACT COPY OF ANY AGREEMENT YOU SIGN. (c) YOU HAVE THE RIGHT AT ANY TIME TO PAY IN ADVANCE THE UNPAID BALANCE DUE UNDER THIS AGREEMENT AND YOU MAY BE ENTITLED TO A PARTIAL REFUND OF THE FINANCE CHARGE. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED: Executed by; Parris Butler Signature of Borrower; Parris Butler Date of Signature: Executed by; Transform Credit Inc. Signed on behalf of Transform Credit Inc. Date of Signature: