Bank Credit Card Agreement
(NY Residents:  RETAIL INSTALMENT CREDIT AGREEMENT)
Nonnegotiable Consumer Note

This Agreement controls the use of your bank credit card
account (“Account”).  Read it and keep it for your reference.
Subject to applicable law, this Agreement may be changed at
any time beginning twelve (12) months after Account opening in
accordance with the Change Of Terms paragraph in the OUR
RIGHTS AND HOW THEY AFFECT YOU section of this
Agreement.  This Agreement also includes an Agreement to
Arbitrate with a right to reject arbitration.  See “ARBITRATION
PROVISION (AGREEMENT TO ARBITRATE CLAIMS)” below.  
In this Agreement, the words “you,” “your,” and “Cardholder”
mean those who we explicitly approved to use the Account.  The
words “we,” and “us,” and “our” mean Monterey County Bank,
located in Monterey, California, and our successors and assigns.
The words “Card” or “Cards” mean the credit card that we issue
to you.  The word “Account” means an individual credit card
account.  If you use your Account number to get credit, that will
be considered a “use” of the Card.  
The following items are now incorporated into this Agreement and
made a part of this Agreement:
(1)  Any  application,  acceptance  certificate  or  other  written
document (including an electronic record) that you originally signed
or submitted in any way for this Account (your “Application”);
(2) The accompanying Summary of Terms and the Card and card
carrier that we will send with your Card; and
(3) Your signature (including any electronic or digital signature) on
any Application, sales slip or other evidence of indebtedness on
your Account 
See the accompanying Summary of Terms for important additional
terms and conditions that are a part of this Agreement. 
Effective Date of This Agreement. This Agreement begins on
the earlier of (i) the date that your request for a Card and Account
is approved by us or (ii) the first date that we extend credit to you
on  your  Account,  as  evidenced  by  a  signed  sales  slip  or
memorandum, a cash advance or balance transfer transaction, or
otherwise  (in  NY,  the  first  date  that  you  sign  a  sales  slip  or
memorandum).  
Signature; Acceptance of This Agreement.  You agree that any
action taken by you in activating your Card, making a payment on
your  Account  or  initiating  any  transaction  on  your  Account  will
constitute your signature on this Agreement.   
Your  Credit  Line. You  agree  that  you  will  not  go  over  the
maximum  amount  of  credit  available  to  you  at  the  moment  you
initiate  a  transaction  on  your Account  (your  “Credit  Line”).    We
may refuse to authorize or accept any transaction on your Account
that  would  cause  you  to  exceed  your  Credit  Line.    We  may
temporarily  agree  to  allow  you  to  exceed  your  Credit  Line;
however,  in  that  case  you  must  repay  the  excess  amount
according to the terms of this Agreement.  

Your Account is a continuing offer to extend more credit to you that
we may end at any time.  We reserve the right to change (to set,
increase,  decrease  or  remove)  the  Credit  Line  for  your Account
and/or for specific types of Account balances from time to time.
These changes may occur without prior written notice to you and
may be based upon factors including, but not limited to:  anti-fraud
policies and procedures, your record of making timely payments
and  staying  within  your  established  credit  line  on  your Account
with us, your credit score and information contained in your credit
report.
You will find your initial Credit Line on your Summary of Terms.
Your Credit Line is also printed from time to time on your monthly
statement.  If you ask us, we can tell you your Credit Limit and
available credit.  
Payments are posted to your Account upon receipt.  We reserve
the right not to increase your available credit until your payment
has been processed and verified.  This can take as many as four
(4) business days from the date we get your payment. 
Using  Your  Card  or  Account. You  can  use  your  Card  to
purchase  or  lease  goods  or  services  (including  mail,  telephone
and  electronic  orders) 
from  participating  establishments
(“Purchase”).  You also can use your Card to obtain a cash loan
(“Cash Advance”) by presenting your Card to any institution that
accepts the Card for that purpose or by making a withdrawal of
cash at an ATM.  Transactions made with your Account for things
like money orders, deposits, wire transfer money orders, travelers
cheques, foreign currency and other similar transactions, will be
treated  as  Cash Advances.   They  are  sometimes  called  “quasi-
cash”  transactions.    You  also  can  obtain  credit  by  making  a
payment  from  you  to  another  creditor  of  yours  (“Balance
Transfer”) using forms or other means provided by us.  A Balance
Transfer  is  generally  treated  as  a  Cash  Advance  under  this
Agreement.  The rate of Finance Charge that applies to a Balance
Transfer or other fees and charges imposed at the time of transfer
may differ.  You may not use your Card or your Account for any
illegal  transaction  or  any  gambling  transaction.    We  will  decline
identifiable gambling transactions.  We may refuse to authorize or
accept  any  transaction  on  your  Account  if  your  Account  is
delinquent.    See  the  accompanying  Summary  of  Terms  for  any
additional restrictions on the use of your Card.
Promise  to  Pay. You  promise  to  pay  us  for  all  Purchases  and
Cash Advances,  plus  Finance  Charges,  fees  and  other  charges
due on your Account.  You promise to make all payments in U.S.
dollars and that all checks or other items submitted in payment will
be drawn on U.S. financial institutions.
Convenience  Checks.  We  may  supply  you  with  checks
(“Checks”) that may be used to access your Account and that are
subject  to  the  following  terms  and  conditions:    Payment  of  a
Check will be treated as a Cash Advance on your Account.  Your
Check  must  be  written  in  U.S.  dollars.    Only  the  person  whose
name appears on the Check may sign it.  You authorize us to pay
any Check drawn on your Account, even if the signature does not
correspond exactly to the signature on our records.

You  agree  that  Checks  written  on  your  Account  will  not  be
returned to you.  We are entitled to return your Check unpaid if
there  is  not  enough  available  credit  in  your  Account  or  if  your
Account  is  in  default.    If  we  honor  the  Check  under  these
circumstances, the amount in excess of your Credit Line will be
due immediately.  You may not use a Check to make payments on
your Account.
Monthly Statements. We will send you a statement under the
following circumstances:
(1) At the end of each monthly period of approximately 30 days
(“Billing  Cycle”)  if  there  is  a  debit  or credit  balance  on  your
Account of $1 or more; 
(2)  If  we  assessed  a  Finance  Charge  on  a  balance  in  your
Account; or 
(3) As otherwise required by applicable law.  
Minimum  Payment.    The  minimum  required  payment  on  your
account for each Billing cycle (the “Minimum Payment”) equals the
sum  of  (i)  the  greater  of  (a) one  percent  (1%)  of  your  total
outstanding  Account  balance  on  the  Billing  Cycle  Closing  Date
(your  “New  Balance”)  or  (b) $15;  plus  (ii) any  current  billed
Finance  Charges;  plus  (iii)  any  Late  Payment  Charge  billed  to
your Account in the current Billing Cycle; plus (iv) the greater of (a)
any  past  due  amount  or  (b)  any  amount  by  which  your  New
Balance exceeds your Credit Line.
If  your  New  Balance  is  less  than  your  Minimum  Payment,  your
New Balance is due in full.  
You  may  pay  any  or  all  of  the  amounts  you  owe  at  any  time
without  penalty.    You  must  pay  at  least  the  Minimum  Payment
within 25 days of the Closing Date of the Billing Cycle (shown as
the “Payment Due Date” on your statement).
Application  of  Payments. We  reserve  the  right  to  apply
payments to your Account, in any manner we choose, subject to
applicable law.  We reserve the right not to increase your available
credit by the amount of any payment received until your payment
has been processed and verified, which may take up to four (4)
business  days  from  the  date  of  receipt.  Processing  speed  can
depend on how your check is cleared.

HOW FINANCE CHARGES ARE DETERMINED
Your  Finance  Charge  will  include  the  following:    (i) a  per
transaction Finance Charge (“Cash Advance Fee”) shown on the
accompanying  Summary  of  Terms  applicable  to  each Cash
Advance  posted  during  a  Billing  Cycle  and  (ii) your  periodic
Finance  Charge  computed  by  applying  the  applicable  Monthly
Periodic  Rate  to  (a) your  Average  Daily  Balance  of  Cash
Advances, (b) your Average Daily Balance of Purchases and (c)
the respective Average Daily Balances for other types of balances
(such as balances subject to different Annual Percentage Rates
(APRs)), if any.  Your transferred remaining Fresh Start Solution™
Program Balance, if any, will not accrue any Finance Charges (for
the life of the balance).  

Calculating the Balance Subject to Periodic Finance Charges.
We  calculate  the  balance  subject  to  periodic  Finance  Charges
using  the  Average  Daily  Balance  (“ADB”)  (including  new
transactions)  method.    We  calculate  the  ADB  separately  for
Purchases  and  Cash  Advances  and  for  balances  subject  to
different periodic rates of Finance Charge.  To get each ADB, we
take the beginning balance of your Account for each day for each
type  of  balance,  including  accrued  but  unpaid  Finance  Charges
attributable to such balance, add any new transactions as of the
date of transaction, including any applicable Cash Advance Fees
as of the date each Cash Advance posts with us, and subtract the
applicable  portion  of  any  payments  and  credits  as  of  the  date
those post with us.  This gives us the daily balance for each type
of  balance.    Then  we  add  together  the  daily  balances  for  the
Billing Cycle for each type of balance and divide the total by the
number  of  days  in  the  Billing  Cycle.   This  gives  us  the ADB  for
each type of balance. 
Annual  Percentage  Rate  (APR)  and  Monthly  Periodic  Rate.
Each  Monthly  Periodic  Rate  applied  in  any  billing  cycle  will  be
equal  to  1/12  of  the  corresponding APR.   The  Monthly  Periodic
Rates  and  corresponding  APRs  for  each  type  of  balance  are
shown on the Summary of Terms.
Delinquency  Annual  Percentage  Rate  and  Delinquency
Monthly  Periodic  Rate.
In  the  event  that  you  fail  to  pay  your
Minimum Payment by the Payment Due Date for two consecutive
Billing  Cycles,  a  higher  Monthly  Periodic  Rate  (“Delinquency
Monthly  Periodic  Rate”)  and  corresponding  APR  (“Delinquency
APR”)  will  apply  to  each  type  of  balance  (other  than  a  balance
subject to a 0% APR for the life of the balance) effective on the
first day of the next billing cycle, unless otherwise required by law.
Each  Delinquency  Monthly  Periodic  Rate  applied  in  any  Billing
Cycle will be equal to 1/12 of the corresponding Delinquency APR.
Delinquency Monthly Periodic Rates will no longer apply once you
have paid your Minimum Payment by the Payment Due Date for
six consecutive Billing Cycles.  The Delinquency Monthly Periodic
Rates  and  corresponding  Delinquency  APRs  (for  each  type  of
balance  that  may  be  subject  to  a  Delinquency  Monthly  Periodic
Rate) are shown on the Summary of Terms.  Delinquency Monthly
Periodic  Rates  and  corresponding  Delinquency  Annual
Percentage Rates will no longer apply once you have paid your
Minimum Payment by the Payment Due Date for six consecutive
Billing Cycles.
When Finance Charges Begin to Accrue. Subject to any grace
period,  Finance  Charges  on  Purchases  will  be  imposed  at  the
applicable monthly periodic rate from the date each Purchase is
made and will continue to accrue on unpaid balances as long as
they remain unpaid.  You will have a 25-day grace period to repay
your New Balance before a Finance Charge on Purchases will be
imposed if your Previous Balance is (i) zero, (ii) a credit balance,
or  (iii) paid  in  full  by  the  “Payment  Due  Date”  shown  on  your
statement.    Periodic  Finance  Charges  on  Cash  Advances  (in
addition to per transaction Cash Advance Fees) will be imposed at
the  applicable  monthly  periodic  rate  from  the  date  of  each
transaction and will continue to accrue on unpaid balances as long

as they remain unpaid.  There is no time period within which to
repay Cash Advances to avoid Finance Charges.

ACCOUNT FEES
A variety of fees and charges may be applied to your Account as
described  below  and  allowed  by  law.    Unless  otherwise  stated,
these  fees  will  be  added  to  your  Purchases  balance  as  a  new
Purchase.
Cash Advance Fee. Unless you are a resident of Iowa, each time
you obtain a Cash Advance, we will impose a per transaction fee
as shown on the accompanying Summary of Terms.  This fee is a
Finance Charge.  This fee is waived for any transferred remaining
Fresh  Start  Solution™  Program  Balance.    No  such  fee  will  be
imposed on residents of Iowa.
Late  Payment  Charge.
If  you  do  not  make  your  Minimum
Payment on or before the Payment Due Date, we will apply a Late
Payment  Charge  and  will  have  the  right  to  close  your Account.
The  amount  of  the  Late  Payment  Charge  is  stated  on  the
accompanying Summary of Terms.
Overlimit Fee. When permitted by law, we will apply an Overlimit
Fee if your New Balance exceeds your Credit Line on the Closing
Date of the Billing Cycle.  The amount of the Overlimit Fee, if any,
is stated on the accompanying Summary of Terms.  
Returned Check Fee. To the extent permitted by law, if (a) any
check,  money  order  or  automatic  payment  in  payment  of  your
Account is returned to us unpaid for any reason, or (b) any Check
written on your Account is returned unpaid because there is not
enough available credit in your Account, we will apply a Returned
Check Fee.  The amount of the Returned Check Fee is stated on
the accompanying Summary of Terms.
International  Transaction  Fee. A fee  of  one  percent  (1%)
applies to all (original and reversal) international purchase, credit
transactions  (including
voucher,  and  cash  disbursement 
international  transactions  made  in  U.S.  Dollars).    This  fee  is  a
passthrough of a fee imposed by the card association.

LOST CARDS AND UNAUTHORIZED USE
You  may  be  liable  for  unauthorized  use  of  your  Card.    IF  YOU
THINK  YOUR  CARD  IS  LOST,  STOLEN,  OR  IS  BEING  USED
WITHOUT YOUR  CONSENT,  (i)  you  agree  to  notify  us
immediately  by  writing  to  us  at  Cardholder  Services  Disputes
Resolution, P.O. Box 105374, Atlanta, GA 30348-5374; or (ii) you
agree to call the telephone number that appears initially on your
Summary of Terms and on your most recent statement.  You will
not be liable for unauthorized use that occurs after you so notify
us,  and  your  liability  will  not  exceed  $50.    Prior  to  the  date  this
Agreement begins, you will not be liable for any use of the Card
after its loss or theft.  Misuse of your Card by a person authorized
by  you  to  use  the  Card  or  Account  will  not  be  considered
unauthorized use.

YOUR BILLING RIGHTS AND OUR RESPONSIBILITIES
YOUR BILLING RIGHTS - KEEP THIS NOTICE FOR FUTURE USE
This notice contains important information about your rights and
our responsibilities under the Fair Credit Billing Act.
Notify us in case of errors or questions about your bill
If  you  think  your  bill  is  wrong,  or  if  you  need  more  information
about a transaction on your bill, write to us at Cardholder Services
Disputes Resolution, P.O. Box 105374, Atlanta, GA 30348-5374.
Your letter must be received no later than 60 days after we send
you the first bill where the error or problem appeared.  You can
telephone us, but doing so will not preserve your rights.
In your letter, you must give us the following information.
•
•
•

Your name and Account number.
The dollar amount of the suspected error.
Describe the error and explain, if you can, why you believe 
there is an error.  If you need more information, describe the
item you are not sure about.

If you have authorized us to pay your Card bill automatically from
your checking account, you can stop the payment on any amount
you think is wrong.  To stop payment, your letter must reach us
three business days before the automatic payment is scheduled
to occur.
Your rights and our responsibilities after we receive your written notice
We must acknowledge your letter within 30 days unless we have
corrected  the  error  by  then.    Within  90  days,  we  must  either
correct the error or explain why we believe the bill is correct.
After we receive your letter, we cannot try to collect any amount
you question or report you as delinquent.  We can continue to bill
you for the amount in question, including Finance Charges, and
we can apply any unpaid amount against your Credit Line.  You do
not  have  to  pay  any  questioned  amount  while  we  are
investigating, but you are still obligated to pay the parts of your bill
that are not in question.
If we find that we have made a mistake on your bill, you will not
have  to  pay  any  Finance  Charges  related  to  any  questioned
amount.    If  we  did  not  make  a  mistake,  you  may  have  to  pay
Finance  Charges,  and  you  will  have  to  make  up  any  missed
payments on the questioned amount.  In either case, we will send
you a statement of the amount you owe and the date that it is due.
If you fail to pay the amount that we think you owe, we may report
you as delinquent.  However, if our explanation does not satisfy
you  and  you  write  to  us  within  10  days  telling  us  that  you  still
refuse to pay, we must tell anyone we report you to that you have
a  question  about  your  bill,  and  we  must  tell  you  the  name  of
anyone to whom we reported you.  We must tell anyone we report
you  to  that  the  matter  has  been  settled  between  us  when  it  is
settled.
If we do not follow these rules, we cannot collect the first $50 of
the questioned amount, even if your bill was correct.

Special Rule for Credit Card Purchases
If you have a problem with the quality of property or services
that  you  purchased  with  a  credit  card  and  you  have  tried  in
good faith to correct the problem with the merchant, you may
have  the  right  not  to  pay  the  remaining  amount  due  on  the
property or services.  There are two limitations on this right:  (1)
you must have made the purchase in your home state or, if not
within your home state, within 100 miles of your current mailing
address; and (2) the purchase price must have been more than
$50.  These limitations do not apply if we own or operate the
merchant,  or  if  we  mailed  you  the  advertisement  for  the
property or services.

OUR RIGHTS AND HOW THEY AFFECT YOU
Telephone  Monitoring  and  Recording. To  ensure  that  you
receive quality service and for training purposes, you agree that
we may select phone calls for monitoring and/or recording.  
Communicating  With  You;  Consent  to  Contact  by
Electronic and Other Means: You agree that we may contact
you  as  provided  in  this  paragraph.    We  may  contact  you  for
any lawful reason, including for the collection of amounts owed
to us and for the offering of products or services in compliance
with  our  Privacy  Policy  in  effect  from  time  to  time.    No  such
contact  will  be  deemed  unsolicited.    We  may  contact  you  at
any address or telephone number (including wireless cellular
telephone  or  ported  landline  telephone  number)  as  you  may
provide to us from time to time.  We may use any means of
communication,  including,  but  not  limited  to,  postal  mail,
electronic  mail,  telephone  or  other  technology,  to  reach  you.
You agree that we may use automatic dialing and announcing
devices  which  may  play  recorded  messages.    We  may  also
send text messages to your telephone.  You may contact us at
any time to ask that we not contact you using any one or more
methods or technologies.  You may also avoid certain kinds of
contacts by using the Opt Out Form attached to our Privacy
Policy.
Refunds.  If a seller agrees to give a refund, you will accept a
credit on your Account instead of a cash refund.
Postdated  Checks,  Restricted  Endorsement  Checks  and
Other Disputed or Qualified Payments.  We can accept late,
postdated or partial payments without losing any of our rights
under  this Agreement.    (A postdated  check  is  a  check  dated
later than the day it was actually presented for payment.)  We
are  under  no  obligation  to  hold  a  postdated  check  and  we
reserve the right to process every item presented as if dated
the same date received by us or our check processor unless
you give us adequate notice and a reasonable opportunity to
act on it.  Except where such notice and opportunity is given,
you may not hold us liable for depositing any postdated check.
You agree not to send us partial payments marked “paid in full,”
“without  recourse,”  or  similar  language.    If  you  send  such  a
payment,  we  may  accept  it  without  losing  any  of  our  rights
under this Agreement.  All notices and written communications