CARDHOLDER AGREEMENT

Defined  terms—The  following  terms  have
defined  meanings  in  this  agreement:  "Account"
means  the  credit  Account  regulated  by  this
agreement,  "Card"  means  the  plastic  cards
issued  under  this  agreement,  including  the
numbers  printed  on  these  plastic  cards;  "we,"
"us"  and  "our"  mean  the  financial  institution
appearing on the face of a Card; "you" and "your"
mean  anyone  who  signs  an  application  for  this
Account  or  is  a  guarantor  of  this  Account;  and
"Approval  Letter"  means  our  letter  to  you
approving  your  application  and  describing  some
of the terms of the Account (the "Approval Letter"
which is part of the agreement). 

By signing, using or activating a Card, you accept
the terms and conditions of this agreement and of
the  Approval  Letter.  If  any  provision  of  this
agreement is determined to be unlawful, the rest
of  the  agreement  will  stand  and  the  unlawful
provision will be deemed amended to conform to
applicable  law.  All  Cards  are  our  property  and
must be returned to us immediately according to
our instructions, and we may repossess a Card at
any time in our sole discretion.

1. Promise  to  pay—You  agree  to  pay  us  the
total  amount  of  purchases,  cash  advances,
finance  charges  or  other  fees  or  charges  which
arise  from  use  of  a  Card  by  you  or  any  other
person,  unless  the  other  person  does  not  have
actual, implied, or apparent authority for such use
and you receive no personal benefit from the use.
You  agree  to  be  jointly  and  severally  liable  with
anyone else who has made the same promise.

2. Credit limit—Your credit limit is stated on the
credit  card  carrier,  as  well  as  on  your  monthly
statement. You  promise  to  make  purchases  and
cash  advances  only  up  to  your  credit  limit. Your
promise  to  pay  continues  to  apply  even  if  the
amount due exceeds your credit limit. Obtaining
credit  in  excess  of  your  credit  limit  does  not
increase  your  credit  limit.  We  can  change  your
credit  limit  at  any  time  to  any  amount  (including
zero).  We  will  state  the  new  credit  limit  on  your
next monthly statement.

3. Purchases  and  cash  advances—You  may
use  your  Card,  up  to  your  credit  limit,  to  buy  or
lease goods, services or insurance wherever the
Card is honored. You may also use your Card to
get  a  cash  advance  from  participating  financial
institutions. However, you agree not to use your
Card  for  any  transaction  that  is  illegal  under
applicable  federal,  state  or  local  law,  and  you
understand  that  any  such  use  will  constitute  an
event of default under this agreement. We are not
responsible  for  the  refusal  of  anyone  to  honor
your Card.

4. Monthly  statements—We  will  send  you  a
statement at the end of each billing cycle in which
the  Account  has  a  balance.  Each  monthly
statement  will  show  purchases,  cash  advances,
payments,  adjustments,  fees,  debits  and  credits
made  to  the  Account  during  the  billing  cycle.
Each  monthly  statement  will  also  show  the  new
balance, the finance charge for the billing cycle,
the  minimum  amount  you  must  pay,  and  the
deadline  for  our  receipt  of  your  payment,  which
will be 25 days after the last day covered by the
statement. 

5. Payments—You agree to make the minimum
monthly  payments  that  are  described  in  the
Approval Letter, and to make all payments on this
Account at the address specified on your monthly
statement.  Your  payments  will  be  applied  to  the
balance  due  on  this  Account  in  the  following
order:  a)  finance  charges  on  previously  billed
cash advances, b) finance charges on previously
billed  purchases,  c)  unpaid  annual  membership
fees, d) purchases subject to a lower interest rate
than normal as a result of a special promotion, e)
amounts due on previously billed cash advances,
f) amounts due on previously billed purchases, g)
amounts  due  on  most  recently  billed  cash
advances, and h) amounts due on most recently
billed  purchases  subject  to  the  normal  interest
rate. We  may  accept  late  payments,  partial
payments,  post-dated  checks,  or  any  form  of
payment  containing  a  restrictive  endorsement,
without  losing  any  of  our  rights  under  this
agreement. Our acceptance of checks or money
orders labeled "payment in full" or words to that
effect,  will  not  constitute  an  accord  and
satisfaction nor a waiver of any rights we have to
receive full payment.

6. Periodic  finance  charge—The  periodic
finance  charge  rate  is  stated  as  an  annual
percentage  rate  and  as  a  monthly  periodic  rate
on  the  Approval  Letter  and  on  your  monthly
statement. The periodic finance charge for each
billing  cycle  will  be  computed  by  multiplying  the
periodic  finance  charge  rate  times  the  average
daily  balance  of  your Account  during  that  cycle.
We  get  the  "average  daily  balance"  by  adding
together the daily balance for each day in a cycle

and  dividing  the  total  by  the  number  of  days  in
that  cycle.  The  minimum  finance  charge  for  a
statement period during which there is a finance
charge  is  stated  on  the Approval  Letter.  We  get
the "daily balance" of the Account by using one of
the following methods:

A. Payment  within 

the  grace  period
method—If  the  Approval  Letter  specifies  a
grace  period  in  the  paragraph  labeled
"Annual  Percentage  Rate,"  and  the  new
balance  shown  on  a  monthly  statement  is
paid in full by the payment due date shown on
the statement, then no finance charge will be
imposed  on  the  purchases  itemized  on  that
statement. If this is the case, then we get the
"daily balance" of the Account for each day by
adding  to  the  beginning  balance  all  cash
advances  and  other  debits  (other  than
purchases)  and  deducting  all  payments  and
other credits made or received as of that day.

B. No  grace  method—If  the  Approval  Letter
does  not  specify  a  grace  period  in  the
paragraph labeled "Annual Percentage Rate"
or there is a grace period but the new balance
shown on a monthly statement is not paid in
full by the payment due date, then the "daily
balance"  of  the  Account  for  each  day  is
determined  by  adding  to  the  beginning
balance  all  purchases,  cash  advances  and
other debits and deducting all payments and
other credits made or received as of that day.

7. Cash  advance  fee—Cash  advances  are
subject  to  the  cash  advance  fee  stated  on  the
Approval  Letter,  which  is  also  a  finance  charge.

The  cash  advance  fee  is  in  addition  to  the
periodic finance charge, which is also imposed on
a  cash  advance  from  the  date  of  the  cash
advance.  The  following  transactions  will  be
treated as cash advances:

• using  your  Card  to  obtain  cash  from  a
participating  Automated  Teller  Machine
("ATM");

• using  your  Card  to  obtain  cash  from  a

participating financial institution;

• using  a  convenience  check  drawn  on  the

Account;

• obtaining  money  orders,  travelers  checks,
foreign currency, lottery tickets, casino chips,
vouchers  redeemable  for  cash  or  similar
items.

8. Annual fee—The annual fee on the Account
is stated on the Approval Letter. The annual fee is
payable whether or not you use the Card.

9. Liability for unauthorized use—You may be
liable  for  the  unauthorized  use  of  your  Card,
whether due to loss or theft of a Card or another
reason. You will not be liable for unauthorized use
that occurs after you notify us orally by calling 1-
800-234-5354  or  you  notify  us  in  writing  by
mailing  the  notice  to  P.O.  Box  10409,  Des
Moines,  IA 50306.  In  any  case,  your  liability  will
not exceed $50.

10. Default—You  will  be  in  default  if  you  fail  to
make  any  minimum  payment  or  other  required
payment by the date that it is due. You also will be
in default if you violate any other provision of this
agreement  and  such  violation  materially  impairs
the prospect of you paying the amount due on the

Account.  Upon  default,  we  may  demand
immediate payment of the entire amount due on
the Account and we may enforce our right to this
payment as permitted by law.

A. Late,  over  limit,  and  returned  check  fees.
The  Approval  Letter  states  the  late  charge,
over  limit  charge,  and  returned  check  fees
that will be charged to your Account.

• 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. 

11. International transactions— When you use
your  Card  for  a  transaction  denominated  in  a
currency other than U.S. dollars, the transaction
amount  will  be  converted  into  U.S.  dollars  by
applying an exchange rate selected by the Card
Association  from  among  the  range  of  rates
available  in  wholesale  currency  markets  or  the
government-mandated  rate  on  the  date  the
transaction  is  processed.  The  rate  chosen  may
vary  from  the  rate  the  Card  Association  itself
receives. When  you  use  your  Card  in  a
transaction outside of the United States to make
a  purchase,  obtain  a  cash  advance,  obtain  a
credit  voucher,  or 
these
transactions, a FINANCE CHARGE equal to one
percent  of  the  amount  of  the  transaction
(expressed  as  a  positive  number)  will  be
assessed  against 
"Card
Association"  means  either  VISA International  or
MasterCard International.

reverse  any  of 

your  Account. 

12. Credit  information—You  authorize  us  to
investigate  your  credit  standing  when  opening,
renewing  or  reviewing  your  Account,  and  you
authorize  us  to  disclose  information  regarding
your  Account  to  credit  bureaus  and  other
creditors who may inquire of us about your credit
standing.

13. Other  fees—The  following  charges  will  be
charged to your Account as appropriate:

B. Replacement  Cards,  copies,  and  special
services. We may charge you a reasonable
fee  for  issuing  replacement  cards,  providing
photocopies  and  reprints  that  you  request,
and other special services as allowed by law.

14. Amendments—We  may  amend  or  cancel
this  agreement  at  any  time  by  getting  your
consent  as  provided  by  law  or  by  giving  you  a
notice of the amendments. Cards are property of
the  Credit  Union  and  must  be  returned  at  our
request.

15. Your  billing  rights—keep  this  notice  for
future  use -  This  notice  contains  important
information  about  your 
rights  and  your
responsibilities under the Fair Credit Billing Act.

Notify us in case of errors or questions about
your  statement—If  you  think  your  statement  is
wrong,  or  if  you  need  more  information  about  a
transaction  on  your  statement,  write  us  on  a
separate  sheet  at  the  address  listed  on  your
statement.  Write  to  us  as  soon  as  possible.  We
must hear from you no later than 60 days after we
sent you the first statement on which the error or
problem  appeared.  You  can  telephone  us,  but
doing so will not preserve your rights.

In your letter, give us the following information:

• Your name and Account number.
• The dollar amount of the suspected error.

If  you  have  authorized  us  to  pay  your  Account
automatically from your share Account, checking
Account,  or  through  payroll  deduction,  you  can
stop  the  payment  on  any  amount  you  think  is
wrong.  To  stop  the  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 statement was correct. 

After  we  receive  your  letter,  we  cannot  try  to
collect any amount you question, or report you as
delinquent. We can continue to send statements
to  you  for  the  amount  you  question,  including
finance  charges,  and  we  can  apply  any  unpaid
amount against your credit limit. You do not have
to  pay  any  questioned  amount  while  we  are
investigating, but you are still obligated to pay the
parts of your statement that are not in question.

If  we  find  that  we  made  a  mistake  on  your
statement,  you  will  not  have  to  pay  any  finance
charges related to any questioned amount. If we
didn't  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 ten days telling us that you still
refuse to pay, we must tell anyone we report you
to that you have a question about your statement.
And,  we  must  tell  you  the  name  of  anyone  we
reported you to. We must tell anyone we reported
you to that the matter has been settled between
us when it finally is. 

If we don't follow these rules, we can't collect the
first  $50  of  the  questioned  amount,  even  if  your
statement 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 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 (a)
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 (b) 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.

Cardholder
Agreement

G-8866
12/05

▼
▼
▼
▼
▼
▼
▼
▼
▼