While looking up the details on the loan that I had reported as late, I noticed the Lending Club Promissory note text. I thought I would capture this for comparison purposes in case it changes after the quiet period.
The text “goodkarmaplease” in the Promissory note intrigued me so I searched for that on google, but only 11 pages show up in the search results (114 pages if you choose to make similar pages appear in the search results.) None of the search results have anything to do with Lending Club. In fact, goodkarmaplease seems to be someone’s YouTube user ID.
The Lending Club Promissory Note text as of June 8, 2008 at 11PM central time:
Promissory Note for $25
February 08, 2008
For value received, I (“Borrower”) promise to pay to the order of WebBank or any subsequent holder (“you” or “Lender”) of this Promissory Note (the “Note”) the principal sum of $25 with interest set forth below. Borrower will make payments by automatic debit from the Borrower’s bank account previously provided to Lender. I intend to be legally bound by this Promissory Note (the “Note”). I have read, understood, and agreed to all of the terms of this Note.
This Note bears interest during each calendar month from the date hereof until paid, at a fixed rate of 11.08 (%) annual percentage rate. In no event is the interest rate to be higher than the maximum lawful rate. Interest is calculated on a monthly basis upon the unpaid balance with each date representing 1/12th of a year.
Principal and interest is to be paid during and throughout the period of thirty-six (36) months in the following manner:
Payments of principal and interest in the amount of $0.81 are to be made by the Borrower to the Lender commencing March 07, 2008 , and on the same day of each successive month thereafter until February, 2011 , when the full amount of unpaid principal, together with unpaid accrued interest is due and payable. If the monthly anniversary is on the 29th, 30th, or 31st of the month, and the following month does not have a 29th, 30th, or 31st day, the monthly payment will be due on the last day of the month in which the payment was due. The last payment might be of a slightly different amount to adjust for rounding.
All payments on this Note are to be made in immediately available lawful money of the United States. Borrower may make monthly payments by automated withdrawal from an account designated by Borrower using an automated clearing house or electronic funds transfer or by check. This authorization does not affect the Borrower’s obligations to pay when due all amounts payable under this Note, whether or not there are sufficient funds therefor in such accounts. The foregoing authorization is in addition to, and not in limitation of, any rights of setoff Lender may have. With regard to payments made by automatic withdrawal, Borrower has the right to stop payment of automatic withdrawals or revoke Borrower’s prior authorization for automatic withdrawals by notifying his financial institution at least three (3) banking days before the scheduled date of transfer. Borrower will notify Lender of the exercise of Borrower’s right to stop a payment or revoke Borrower’s authorization for automatic withdrawals at least three (3) banking days before the scheduled date of transfer. All payments are to be applied first to the payment of all fees, expenses and other amounts due to Lender (excluding principal and interest), then to accrued interest, and the balance on account of outstanding principal; provided, however, that after an Event of Default (as defined below), payments will be applied to the Borrower’s obligations as Lender determines in its sole discretion.
If your payment is more than 15 days late, Lender may charge a late fee in the greater of 5.00% of the outstanding payment or $0.05, to the extent permitted by applicable law. Any such late fee assessed is immediately due and payable. Any payment received after 3:00 P.M. on a banking day is deemed received on the next succeeding banking day.
When an automatic debit from Borrower’s account fails and is rejected by Borrower’s bank, or when a check drawn on Borrower’s account is returned unpaid by Borrower’s bank, an unsuccessful payment fee is charged to Borrower. Each attempt to collect a payment is considered a separate transaction, so an unsuccessful payment fee will be assessed for each failed attempt. The amount of each unsuccessful payment fee is $0.05.
Borrower may make any payment early, in whole or in part, without penalty or premium at any time. Any partial prepayment is to be applied against the principal amount outstanding and does not postpone the due date of any subsequent monthly installments, unless Lender otherwise agrees in writing. If Borrower prepays this Note in part, Borrower agrees to continue to make regularly scheduled payments until all amounts due under this Note are paid. Lender may accept late payments or partial payments, even though marked “paid in full”, without losing any rights under this Note.
Borrower will use the proceeds of the loan from Lender primarily for personal, family or household use and not for commercial purposes. Borrower certifies that the proceeds of the loan will not be used for the purpose of purchasing or carrying any securities.
Borrower will be deemed in default (each, a “Event of Default”) if Borrower: fails to pay any amount due under this Note; files or has instituted against it any bankruptcy or insolvency proceedings or makes any assignment for the benefit of creditors; dies or makes any material misrepresentation in this Note or any other documents, applications or related materials delivered to Lender in connection with this Note.
Upon the occurrence of an Event of Default, Lender may exercise all remedies available to Lender under applicable law, including demand upon Borrower to immediately pay all amounts owed under this Note. Lender may assign this Note without notice to Borrower. Borrower may not assign this Note without the prior written consent of Lender. This Note inures to the successors, permitted assigns, heirs and representatives of Borrower and Lender.
Borrower hereby waives demand, notice of non-payment, protest, and all other notices or demands whatsoever, and hereby consents that without notice to and without releasing the liability of any party, the obligations evidenced by this Note may from time to time, in whole or part, be renewed, extended, modified, accelerated, compromised, settled or released by Lender.
Any changes to this Note must be in writing signed by Borrower and Lender. Notices will be mailed electronically to the addresses provided.
This Note has been executed and delivered in the state of Utah and is deemed a contract made under such state’s law. The unenforceability of any provision of this Note shall not affect the enforceability or validity of any other provision of this Note.
STATE LAW NOTICES:
CALIFORNIA RESIDENTS ONLY: A married applicant may apply for a separate account. If you take any adverse action as defined by Â§ 1785.3 of the California Civil Code and the adverse action is based, in whole or in part, on any information contained in a consumer credit report, I have the right to obtain within 60 days a free copy of my consumer credit report from the consumer reporting agency who furnished you my consumer credit report and from any other consumer credit reporting agency which complies and maintains files on consumers on a nationwide basis.
CALIFORNIA AND UTAH RESIDENTS: As required by California and Utah 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.
MARYLAND RESIDENTS ONLY: You elect to make this loan pursuant to Subtitle 10 (Credit Grantor Closed End Credit provisions) of Title 12 of the Maryland Commercial Law Article only to the extent that such provisions are not inconsistent with your authority under federal law (12 U.S.C. Â§ 85, Â§ 1463(g), or Â§ 1831d, as appropriate) and related regulations and interpretations, which authority you expressly reserve.
MASSACHUSETTS RESIDENTS ONLY: Massachusetts law prohibits discrimination based upon marital status or sexual orientation.
GEORGIA RESIDENTS: I waive any right to require you to take action against the principals as provided in O.C.G.A. Â§10-7-24.
IOWA RESIDENTS (If the principal amount of this loan exceeds $20,000) AND KANSAS RESIDENTS: IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.
MISSOURI AND NEBRASKA RESIDENTS: ORAL LOAN AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF SUCH DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE. TO PROTECT BORROWER(S) AND THE LENDER AND ANY HOLDER OF THIS NOTE FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.
NEW JERSEY RESIDENTS: The section headings of the Note are a table of contents and not contract terms. Portions of this Note with references to actions taken to the extent of applicable law apply to acts or practices that New Jersey law permits or requires. In this Note, actions or practices (i) by which I am or may be permitted by “applicable law” are permitted by New Jersey law, and (ii) that may be or will be taken by me unless prohibited by “applicable law” are permitted by New Jersey law.
NEW YORK, RHODE ISLAND and VERMONT RESIDENTS: I understand and agree that you may obtain a consumer credit report in connection with this application and in connection with any update, renewals for extension of any credit as a result of this application. If I ask, I will be informed whether or not such a report was obtained, and if so, the name and address of the agency that furnished the report. I also understand and agree that you may obtain a consumer credit report in connection with the review or collection of any loan made to me as a result of this application or for other legitimate purposes related to such loans.
OHIO RESIDENTS ONLY: The Ohio laws against discrimination require that all creditors make credit equally available to all credit-worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with the law.
WISCONSIN RESIDENTS ONLY: For married Wisconsin residents, my signature confirms that this loan obligation is being incurred in the interest of my marriage or family. No provision of any marital property agreement (pre-marital agreement), unilateral statement under Â§ 766.59 of the Wisconsin statutes or court decree under Â§ 766.70 adversely affects your interest unless, prior to the time that the loan is approved, you are furnished with a copy of the marital property agreement, statement, or decree or have actual knowledge of the adverse provision. If this loan for which I am applying is granted, I will notify you if I have a spouse who needs to receive notification that credit has been extended to me.
UTAH BORROWERS: 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.
BY: LENDINGCLUB CORPORATION
ATTORNEY-IN-FACT FOR BORROWER