Dear Valued Member,

In light of the upcoming hurricane season and to ensure that all homeowners adopt a proactive approach to securing adequate coverage during this period, we are writing to inform you that Ariza Credit Union has recently updated the Terms and Conditions outlined in our offer letters issued to all members with mortgages over residential and commercial buildings. We also urge all homeowners to ensure that their insurance policies are up-to-date and that premiums are paid in full to guarantee comprehensive coverage during this critical time.

These updates specifically affect Clauses H and I, which have been amended to better reflect our current policies and practices. We encourage you to review these changes carefully to ensure you are fully informed.

An excerpt of the intended amendments is as follows:
(H) You are required to pay the insurance premium in respect of the insurance policy assigned to the Credit Union as listed in the paragraph headed “Securities” above, on a timely basis for the entire duration of the loan. The Credit Union is not under any obligation; however, at its discretion, the Credit Union reserves the right, where there is default in any of the above matters, to keep insured the said building(s) and that its expenses of so doing, shall be repaid to it by you on demand and until so repaid shall be added to the principal monies owed and bear interest accordingly.

(I) Notwithstanding subsection (h) above, you may instead indicate in writing your intention to make pre-action monthly deposits to cover the insurance policy in advance. Where this option is requested in writing, you shall deposit with the Credit Union an amount equivalent to one-twelfth of the annual insurance premium in a suspense account in your name each consecutive month during the currency of this loan no later than on the last day of each month from time to time in respect of the policy assigned to the Credit Union under the terms of this agreement.

a. The Credit Union shall hold the same amounts in the said suspense account and it is understood and agreed that this amount will not bear interest whatsoever. You shall have no access to the amounts held in the said account until the date in each year on which the premium falls due, and same is to be utilized in paying the said annual insurance premiums.
b. The payment of such premiums and the maintenance of associated policies remain your responsibility. This payment must be initiated either by (a) you, authorizing the Credit Union in writing at least one month in advance of the date it becomes due to make payment; or (b) a demand notice received by the Credit Union directly from the insurance company or through you. The onus is on you to ensure that these funds are remitted to the insurance company in a timely manner.

Additionally, please be informed that some insurance companies will no longer be sending renewal notices for home insurance directly to us. Instead, these notices will be sent directly to you or not at all. It is crucial that you promptly inform Ariza of any renewal notices you receive to ensure that payments are made on your behalf and more importantly, that you advise if you have not received any notice prior to the date scheduled for renewal.

Upon receipt of this update, you will have at least thirty (30) days to consult the office for any clarifications or concerns. Failure to do this within the specified time will be treated as you have been informed.

Should you have any questions about the amendments or require clarification, please do not hesitate to contact us at 440 1759 / 537-7126 or securities@arizacu.com.

Thank you for your continued trust in Ariza Credit Union

Download the updated terms and conditions in PDF Format