Repayment Waiver

Repayment Waiver where loan agreement is for a fixed term.

General VOLUNTARY WAIVER PROTECTION – Waiver protection is voluntary.

This voluntary waiver protection can be cancelled at no cost within 10 working days from the statement date of the initial disclosure document.

DURATION OF RIGHT – A payment waiver is not insurance.  This means that when the loan is repaid the borrower’s right to waiver stops because the borrower no longer must make payments.  The borrower may lose the right to have payments waived in some other circumstances.

PAYMENT WAIVER AGREEMENT

Agreement made between Direct Cash Orders Limited trading as DCO FINANCE (the lender)

AND   the protected borrowers charged the relevant fee as defined on the loan contract initial disclosure documents  (together with their executors and administrators called “the borrower”)

Background

A. Pursuant to the loan agreement referred to in the first schedule the borrower has borrowed or is to borrow the initial unpaid balance from the lender and wishes to guard against certain misfortunes which prevent the borrower from making the payments due under the loan agreement.

B. The lender has agreed that if the borrower pays to it the waiver fee or agrees that the fee may be added to the unpaid balance the lender will waive the periodic installments payable the borrower in the event of the occurrence of those misfortunes to the extent set out in this agreement.

The parties agree:

    • In consideration of the payment of the waiver fee the lender agrees, subject to the terms, and conditions contained herein, that if, during the period of this agreement, the protected borrower shall suffer any waiver event defined in the second schedule and/or the definitions section of this agreement then the lender will waive payment of the sums specified in the schedule of this agreement (the payments to be waived).
    • The Consumer Guarantees Act 1993 will not apply to services required for business purposes.
    • If there is a borrower other than the protected borrower or if there is a guarantor, in accordance with section 4 of the Contracts (Privacy) Act 1982 the lender acknowledges that this agreement is intended to confer a benefit on and may be enforced that other borrower and the guarantor if the protected borrower is dead or for any reason unable or unwilling to make a claim but this clause does not relieve any borrower from any obligation to provide evidence in support of the claim and does not mean that the lender must waive a payment if the borrower does not carry out all his obligations under this waiver agreement.

Waiver events covered this agreement

As defined on the loan contract initial disclosure documents, The protected borrower can pay a fee to be covered for repayment waiver.      

1          Repayment Waiver covers events:        DEATH (& Terminal Illness)

 

SCHEDULE

 A          Event                                        Death

The death of the protected borrower.

Payments to be waived – The unpaid balance payable at the date that the lender is provided with a death certificate or other satisfactory evidence of the death of the protected borrower excluding any arrears or money due as a result of the borrower’s default.

B          Event                                        Terminal Illness

Any terminal illness of the protected borrower which results in the protected borrower becoming and remaining totally disabled from engaging in or attending to his usual occupation or an equivalent business or occupation for which he is reasonably suited

Payments to be waived – Periodic installments falling due during the waiver period, namely that period

      • Beginning on the later of the dates
        • When the protected borrower has for 10 of the protected borrower’s consecutive working days been unable to continue his usual employment or other occupation as a result of the terminal illness and
        • When the borrower has provided the lender with a certificate in writing from a registered medical practitioner to the effect that the protected borrower is as a consequence of the terminal illness unable to attend to his normal employment or other occupation and has been so unable from the date that the protected borrower ceased work.

DECLARATION

I declare that I am not suffering from and have not received any indication that I may be suffering from any terminal illness, which would give rise to death or incapacity during the period of this agreement. I agree to accept the terms, conditions and exceptions of this agreement. I authorise any registered medical practitioner or other health professional and any hospital and the New Zealand Employment Service (and any equivalent organisation) to divulge any information about me as may be required DCO Finance or its agent in the event of a waiver claim.  I authorise the disclosure of personal information held other parties regarding any previous waivers or consumer credit insurance or insurance of the same or similar nature to consumer credit insurance.  I agree to DCO Finance or its agent disclosing to other parties personal information regarding me or this agreement. 

Definitions

Wherever used herein the following words and expressions shall unless the context otherwise requires have the meanings respectively assigned to them. Words of one gender shall include the other genders.

      • “Date this agreement was made” means the date on which this agreement becomes binding on the lender and the borrower.
      • “Event” means death, terminal illness of the protected borrower.
      • “Loan agreement” means the loan agreement described in the first schedule
      • “Payments to be waived” means the periodic installments due under the loan agreement which the borrower is not obliged to pay
      • “Periodic Installments” means the periodic installments stated the payments section of the disclosure statement/schedule of payments in the loan agreement and specified in the first schedule hereof.
      • “Protected borrower” means the borrower or guarantor named in the first schedule whose suffering of any event leads to the waiver of payments.
      • “This Agreement” includes the schedules, conditions and endorsements (if any) of this payment waiver agreement.
      • “Waiver event” means the event described in the first schedule as being the event upon which the borrower becomes entitled to the waiver.
      • “Working day” has the same meaning as is in the Credit Contracts and Consumer Finance Act 2003

Terms and Conditions of this Waiver Agreement

 

Notice of Claim. Notice of claim must be given the protected borrower (or agent acting on behalf of) to the lender as soon as possible after the protected borrower becomes aware of the waiver event but in any case within 28 days of the occurrence of the waiver event completing a claim form and providing it to the company. A claim form may be requested from the company telephone, fax or e-mail. It is the responsibility of the protected borrower (or agent acting on behalf of) to obtain the claim form and to complete the claim.

Borrower to take precautions. The borrower must take all reasonable precautions to prevent any event, which might give rise to a claim.

Proof of Claim and Requirements. The protected borrower (or agent acting on behalf of) shall provide to the lender all proof of the claim including (but not way of limitation) such medical evidence as the lender may reasonably require from time to time to enable the lender to deal with the claim, such proof and evidence being provided at the expense of the borrower.

      • The protected borrower shall as soon as possible after the occurrence of the waiver event of terminal Illness in respect of which a claim is made obtain and follow the advice from a registered Medical Practitioner.

Settlement of Claims. Upon receiving proof to its satisfaction of the occurrence of a waiver event the lender will waive the periodic installments due during the waiver period. 

  • The lender shall be liable only to waive installments in total for not longer than the maximum period of waiver for the current waiver period if the waiver period or periods for the different waiver event or events would otherwise add up to that maximum period.

Exclusions

General

The lender is not obliged to waive periodic installments in respect of any event attributable wholly or in part to any illness, injury, disability or physical, psychiatric or psychological condition of the protected borrower which existed before when this agreement was made and was not disclosed in writing to the lender immediately before this agreement was made.

 

The lender is not bound to waive payment of any installment at the time of the waiver event in respect of which the borrower claims waiver:

  • Any installments, including any associated costs, due before the waiver event that were unpaid (arrears).
  • The lender is not bound to waive payment of any installment if the borrower has not told the truth or has mislead the lender in applying for the loan or before signing this agreement

Death. The lender is not obliged to waive periodic installments if the protected borrower dies his own hand, whether the protected borrower at the time is sane or insane, within 12 months of this agreement being made.

Terminal Illness. The lender is not obliged to waive periodic installments in respect of any event arising from any terminal illness which the protected borrower has suffered or been treated for within 6 months immediately preceding the commencement date of this agreement.

 

Termination of Waiver

The right to waiver shall automatically terminate on the earlier of

  • The expiry of the Loan agreement.
  • The repayment of the unpaid balance under the Loan agreement.
  • Any collateral which provides security under the loan agreement having been seized pursuant to a security interest for breach of the loan agreement unless the borrower is or was not in arrears in his periodic installments or otherwise in financial default under the loan agreement at the time of such seizure and remains in financial compliance at the time the event occurs.
  • This agreement being cancelled the protected borrower or the lender.

 

Limitation of Liability under this Agreement

The maximum total aggregate liability of the lender to waive payments under this agreement for any one protected borrower shall be the lesser of the unpaid balance at time of the occurrence of the waiver event or $10,000.

 

Cancellation

The protected borrower may at any time cancel this agreement giving ten days notice in writing to the lender. After such cancellation, if any part of the waiver fee has been paid for any period after the cancellation takes effect, the lender will refund to the borrower 80% of any unexpired portion of that part on a pro-rata basis.  No refund will be made if the lender has waived payment of any periodical installment under this agreement.

 

General

Disappearance of the protected borrower. Death shall not in any way be presumed the disappearance of the protected borrower except in the event of the total loss of the ship or aircraft on which such protected borrower is proved to have been travelling.

Conditions Precedent. The

      • Due observance and fulfilment of the terms, provisions, conditions and endorsements of this agreement the protected borrower in so far as they relate to anything to be done or complied with the protected borrower and
      • Truth of the statements and answers in any claim form or in any statement in support of a claim shall be conditions precedent to any liability of the lender to grant any waiver under this agreement.

Jurisdiction. This agreement is governed New Zealand law and the parties irrevocably submit to the sole jurisdiction of the New Zealand courts.

Assignment. If the lender assigns the loan agreement or the right to receive the periodic installments under the agreement to any other party, the lender may assign its obligations under this agreement together with any waiver fee paid in advance for any period after the date of assignment to that other party and if it does so, it will not longer be liable hereunder.  Any such assignment shall carry with it the borrower’s rights to waiver under this agreement.

Pursuant to the Privacy Act 1993 the following is brought to the borrower’s attention:

    • The application for waiver rights collects personal information about the borrower.
    • The information is collected to evaluate the cover the borrower seeks.
    • The intended recipient of the information is the lender or such agents that it might appoint from time to time to carry out its obligations and act on its behalf under this plan.
    • The information being collected the lender is held at the offices of the lender at Level 1 / 12 Hagley Street, Porirua Wellington.
    • The borrower must provide the information pursuant to the borrower’s duty to disclose all material facts relevant to the waiver rights sought and is mandatory.
    • The failure to provide this information may result in the borrower’s application for right to any waiver being declined or those rights becoming voidable or void from the beginning.
    • The borrower has rights of access to, and correction of the information, subject to the provisions of the Privacy Act 1993.