CHALLENGE PROGRAM OFFERS INSTALLMENT PAYMENT PLAN

July 26, 2010 - You buy a new pickup and can spread out the payments over 60 months, and mortgages are usually set up on 10-, 15- or 30-year installment plans. It just makes paying for a high-value asset a little bit more manageable.

With that in mind, AQHA is implementing an installment payment plan for Bank of America Racing Challenge program enrollment fees. While the Challenge is a proven way to increase the value of the horse during its lifetime, AQHA recognizes that making the lump-sum payment on a large group of horses might prove difficult.

The new Racing Challenge installment payment plan allows horsemen to make a down payment on nominations and then spread the remainder out in payments over a specified period of time. There is no interest, finance charge or additional administrative expenses charged for this installment enrollment plan. It is intended as a service for Challenge customers. Even if a customer has signed on for the installment plan, full or increased amounts of monthly payments can be paid at any time. Customers who prefer to pay the enrollment fees in full are encouraged to do so.

If you chose to participate in the installment plan, you need to make a minimum down payment of 20 percent when you file a horse's enrollment papers by the deadline of August 15. The horse will not be officially enrolled until the full payment is made on or before May 1 of the following year. However, the enrollment fees will not increase past the normal December 31 deadline, despite the horse turning one year older.
Here are some other elements of the program:

*Payments made for a group of horses will be applied in random order unless specified otherwise.

*If a horse in the program is sold before the entire enrollment fee is paid, the horse will not be listed in the sale catalog as Challenge-enrolled or considered Challenge-enrolled unless the full nomination payment is made.

*If a horse is sold before the full enrollment fee has been paid, the official Challenge nominator will be the person who makes the final payment of the enrollment fee. There won't be any refunds of enrollment fees for anyone using this installment enrollment plan and not completing the enrollment process.

"There is no reason to wait until later to submit Challenge enrollments, so take advantage of this offer and submit them today," says Darrell Hare, AQHA director of the Racing Challenge. "Our customers' continued support of the Bank of America Racing Challenge is appreciated, and we hope that this new installment payment option is helpful."

For more information or to request an enrollment form, call the Challenge hotline at (877) 222-7223.

Sample Payment Schedule

One suggested installment payment plan for Challenge enrollments is as follows: Submit enrollment paperwork with a 20 percent payment of the entire balance on or before the deadline of August 15. The remaining payments would be paid out in nine installments, with the final payment due May 15, 2011.

For example, enrolling eight weanlings at $300 each ($2,400 total), plus two yearlings at $600 each ($1,200 total), results in a total enrollment fee of $3,600.

Using the above payment plan, a 20 percent partial payment of $720 would be due with completed enrollment forms on or before August 15. This would leave an unpaid balance of $2,880, which based on the installment plan could be paid out in nine monthly payments of $320 each. Based on this plan, the entire balance would be paid in full by May 15, 2011.