Loans Deferments

Loan Deferment Info                

Deferment of Loan Payments

A deferment is a postponement of a payment (principal and/or interest) to a later date without causing the loan to be considered late or in default. The purpose of a deferment is the enhancement of a borrower’s cash flow to assist the borrower in responding to short term needs.
 
Generally, payments may be deferred for no more than six (6) months. No single deferment action can exceed one (1) year of future payments. A one year deferment should be used only when absolutely necessary and with strong justification.
 
If the request for deferment is in response to a natural disaster, fire, or other loss of facilities, the requirement for financial statements may be waived.
 
A deferment can only be approved if the borrower can reasonably project that they can resume original payments and bring the deferred amount current within a maximum of five (5) years after the deferment period.
 
Partial payments may be made during the deferment period.
 
Interest will continue to accrue during any period of deferment, including the catch-up period.

Catch-up Payment Plan

When payments resume, they are applied to the loan in the following order: accrued fees until current, interest until current, principal until current, late fees.
 
During the catch-up period, monthly payment amounts can vary but must be a minimum of one regular monthly payment.
 
Payments are due on the first and late after the 15th.
 
 Payments in excess of the catch-up payment plan may be remitted at any time during the catch-up period.
 
The deferred amount can NOT be left as a lump sum balloon payment to be paid at the end of the catch-up period.
 
The maturity of the loan can not be changed.
 
A Catch-up Agreement must be signed by all owners, borrowers and guarantors.
 
A new ACH Authorization Agreement must be signed by the borrower.
 
Both the Catch-up Agreement and the ACH Authorization must be returned to Alacom no later than the last business day prior to the 15th of the month which is prior to the month starting catch-up. Ex: catch-up payments start Feb 1st; Alacom must have the agreements no later than the last business day before January 15th.