As a Cosigner on a loan from the Detroit Economic Gemach, you need to be aware of the range of your obligations, and how the enforcement of those obligations will occur. This document is to ensure you are aware of your role.
1. You are being asked to guarantee this debt. Think carefully before you do. Be sure you can afford to pay if you have to, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount. The creditor can collect this debt from you without first trying to collect from the borrower. The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, it may become part of your credit record. This notice is not the contract that makes you liable for the debt. I agree to act as Cosigner for the following loan:
2. The repayment schedule for the loan is:
Quarterly payments due by the end of each calendar quarter, in amounts calculated as follows.
‣ Until 6 months after graduation (but not to exceed 3.5 years): no payments are due
‣ 1st year of repayments: 5% per quarter = 20% yearly total
‣ 2nd year of repayments: 8.75% per quarter = 35% yearly total
‣ 3rd year of repayments: 11.25% per quarter = 45% yearly total
3. The Gemach may draw funds due directly from your bank account. You will receive advanced notice of the first
time the Gemach seeks funds from you, and/or withdraws funds from your account. Thereafter, no advance notice
will be given before the Gemach withdraws funds from your account.
4. Cosigner’s obligations may be triggered by Borrower’s violation of non-monetary obligations, as is more fully
specified in the loan application and loan agreement.
5. There may be more than one Cosigner on a loan. Each and every Cosigner is fully responsible to completely honor and satisfy the unmet obligations of Borrower under the loan in a timely manner. The Gemach may collect from any Cosigner. A Cosigner cannot direct the Gemach to another Cosigner to collect some or all of an outstanding monetary obligation. Amounts collected by the Gemach across multiple Cosigners that in sum exceed amounts due will be addressed as follows:
Equal amounts shall be applied, to the extent available up to the full payment of each Cosigner, to satisfy the total amount due, and any excess from either Cosigner’s payment will be returned to the respective Cosigner. Gemach will not pay interest to a Cosigner for refunded amounts.
By signing below, the Cosigner acknowledges awareness of the terms of this loan, understands his/her obligations – as are set forth in this document, the loan application, and the loan agreement, and agrees to meet those obligations in a timely and complete manner.
By clicking “Submit,” you agree that you are adopting the following as your “Electronic Signature” in accordance with the E-Signature Act and Michigan’s Uniform Electronic Transactions Act: 1) clicking “Submit” in connection with any application; 2) by writing your signature via a mouse, finger, or stylus; and 3) by any other method permitted by us to express consent or agreement to an application or document. In addition, you agree that your Electronic Signature shall have the same effect as if you had signed the Document or electronic record in ink. Further, by applying your Electronic Signature, Cosigner acknowledges that the terms of this Acknowledgment will be integrated into any loan agreement entered into with the Detroit Economic Gemach for this loan.