Visa® SECURED CREDIT CARD AGREEMENT

In this Agreement, the words “you” and “your” mean each and all of those who have applied 
for the Card, signed the Card, used the Card or authorized someone else to use the Card. 
“Card” means the Visa card and any duplicates and renewals we issue. Account means your 
Visa card Line of Credit Account with us. “We,” “us” and “ours” mean MAX Credit Union. If 
you do not agree to the terms and conditions of this Agreement, you must not use any Card 
issued to you and you must cut all Cards issued to you in half and return them to us.

1. Responsibility.  If  we  issue  you  a  Card,  you  agree  to  repay  all  debts  and  the  FINANCE
CHARGE arising from the use of the Card and the Account. For example, you are responsible 
for charges made by yourself, your spouse and minor children. You also agree to be responsible 
for charges made by anyone else to whom you give the Card, and this responsibility continues 
until the Card is recovered. You cannot disclaim responsibility by notifying us, but we will close 
the Account for new transactions if you so request and if you return all Cards. Your obligation 
to pay the Account balance continues even though an agreement, divorce decree or other court 
judgment to which we are not a party may direct you or one of the other persons responsible 
to pay the Account. Any person using the Card is jointly responsible with you for charges he or 
she makes, but if that person signs the Card, he or she becomes a party to this Agreement and 
is also jointly responsible for all charges on the Account, including yours. You agree the Card 
may not be used for any illegal or unlawful activity or transactions, including but not limited
to, illegal gambling.

2. Lost Card Notification. If you believe the Card has been lost or stolen, you will immediately 
call us at 1-800-449-7728.

3. Liability for Unauthorized Use.  You may be liable for the unauthorized use of your Card. 
You will not be liable for unauthorized use that occurs after you notify the Credit Union, orally 
or in writing, of the loss, theft, or possible unauthorized use. In any case, your liability will not 
exceed $50.00. If you tell the Credit Union after learning of the loss or theft of the Card your 
liability for unauthorized transactions using the Visa system is zero. For ATM transactions,
card transactions through a non-Visa network, Visa Commercial cards, Visa or Plus* ATM or
any ATM transactions, or cards issued outside the United States, if you tell the Credit Union
within two (2) days after learning of the loss or theft of the Card, your liability for unauthorized 
transactions is $50.00 and $500 if you do not tell the Credit Union within two (2) business
days and if you do not tell us within sixty (60) days after the statement was mailed, you may 
not get back any money you lost if we can prove that we could have stopped someone from
taking the money had you told us in time. We may require you to provide a written statement 
regarding claims of unauthorized transactions. If we determine that you have been grossly
negligent or fraudulent in the handling of your account or Card, your liability may increase.
These rules do not apply to other electronic transfers.

4. Credit Line. If we approve your application, we will establish a self-replenishing Line of
Credit for you and notify you of its amount when we issue the Card. You agree not to let the
Account balance exceed this approved Credit Line. Each payment you make on the Account
will restore your Credit Line by the amount of the payment which is applied to principal. You
may request an increase in your Credit Line by written application to us, or by telephone at
334-260-2600 or 1-800-776-6776, which must be approved by a loan officer. By giving you
written notice, we may reduce your Credit Line from time to time or, with good cause, revoke 
your Card and terminate this Agreement. Good cause includes your failure to comply with this 
Agreement or our adverse reevaluation of your credit worthiness. You may also terminate this 
Agreement at any time, but termination by either you or us does not affect your obligation to 
pay the Account balance. The Cards remain our property, and you must recover and surrender 
to us all Cards upon our request and upon termination of this Agreement.

5. 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  inquire  of  us  about  your  credit
standing.

6. Monthly  Payment.  We  will  mail  you  a  statement  every  month  showing  your  Previous
Balance  of  purchases  and  cash  advances,  the  current  transactions  on  your  account,  the
remaining credit available under your Credit Line, the New Balances of purchases and cash
advances,  the  Total  New  Balance,  the  FINANCE  CHARGE  due  to  date,  any  other  billed
fees, and the Minimum Payment required. Every month you must pay at least the Minimum
Payment  within  25  days  of  your  statement  closing  date.  You  may,  of  course,  pay  more
frequently, pay more than the Minimum Payment, or pay the Total New Balance in full, and
you  will  reduce  the  FINANCE  CHARGE  by  doing  so.  The  Minimum  Payment  will  be  either
(a) 3.00% of your Total New Balance, or $10.00, whichever is greater, or (b) your Total New
Balance, if it is less than $10.00, plus (c) any portion of the Minimum Payment(s) shown on
prior  statement(s)  which  remains  unpaid.  In  addition,  at  any  time  your  total  New  Balance
exceeds your Credit Line, you must immediately pay the excess upon our demand. We will
apply  your  payments  first  to  the  previously  billed  and  unpaid  FINANCE  CHARGE  on  cash
advances;  then  to  the  previously  billed  and  unpaid  FINANCE  CHARGE  on  purchases;  then 
to  any  late  charge  outstanding  and/or  any  over  the  limit  charge  outstanding,  if  applicable: 
then  the  remainder  of  the  payment  will  be  prorated  and  applied  to  the  cash  advance  and 

purchases’  outstanding  balances.  If  a  payment  is  ever  late  ten  days  or  more,  you  will  be 
charged a late charge equal to 5.00% of the amount of the scheduled payment in default, with 
a minimum charge of $.50 and a maximum charge of $25.00. You agree a fee of up to $30.00 
will  be added  to  your  card  balance,  and such  a  fee  will  be  treated as a purchase including  
FINANCE CHARGES, if a check to pay all or part of the card balance is returned unpaid.

7. FINANCE CHARGE. If you have a zero purchase balance at the beginning of a statement 
cycle, you can avoid a FINANCE CHARGE on purchases billed during the cycle by paying 
the full amount of the New Balance of Purchases within 25 days of your statement closing 
date. Otherwise, purchases will be subject to a FINANCE CHARGE from the date they are 
posted to your account. Cash advances are always subject to a FINANCE CHARGE from the 
transaction date. The FINANCE CHARGE (interest) is calculated at the periodic rate and 
ANNUAL PERCENTAGE RATE disclosed to you on the average daily principal balances of 
purchases and cash advances in the Account. Separate FINANCE CHARGES for purchases 
and cash advances are determined by multiplying the periodic rate by the separate average 
daily balance for purchases and cash advances. Each average daily balance is determined by 
taking the beginning balance (of cash advances and purchases) in your account each day, 
adding any new purchases or cash advances (whichever is applicable) and subtracting any 
payments or credit. The results are the daily balances. The daily balances are totaled, and 
divided by the number of days in the statement period to produce separate average daily 
principal balances for purchases and cash advances to which the periodic rate is then applied.

8. Variable Rate.  Your account is subject to a Variable Rate which is based on the highest 
Prime Rate as published in the Money Rates section of the Wall Street Journal (“Index”) in 
effect the last business day of each month (the Determination Date), plus our Margin. The 
Index plus the Margin equals the Interest Rate. Changes in the Index will cause changes in 
the Interest Rate and will take effect as of the first day of the next statement cycle. Increases 
or decreases in the Interest Rate will result in like increases or decreases in the FINANCE 
CHARGE, and will affect the amount of the regularly scheduled payments that you will be 
required to make. There is no limit to the amount by which the ANNUAL PERCENTAGE RATE 
can change during any statement cycle other than the maximum ANNUAL PERCENTAGE 
RATE. The maximum ANNUAL PERCENTAGE RATE is 18%.

9. Default. You will be in default if you fail to make any Minimum Payment when due. You
will also be in default if (a) your ability to repay us is materially reduced by a change in your
employment, an increase in your obligations, bankruptcy or insolvency proceedings involving 
you, your death or your failure to abide by this Agreement, (b) you break any promise you have 
made to us under this Agreement or any other agreement you have with us, (c) any statement 
you have made in this Agreement, in connection with this Agreement or in connection with
any other Agreement you have with us is not true, or (d) we should otherwise feel insecure in 
receiving payment of the Account balance for whatever reason. If you are in default, we have 
the right to demand immediate payment of your full Account Balance at once without notice to 
you. In the event of a default, you agree to pay all costs of collecting the amount you owe under 
this agreement including, if the unpaid balance under this plan is greater than Three Hundred 
Dollars ($300.00) at the time of collection, reasonable attorney fees if the debt is referred for 
collection to an attorney who is not our employee and if suit is filed, court costs.

10. Using  the  Card.  You  may  use  your  Visa  card  at  millions  of  locations  worldwide.  In
addition, you may obtain cash advances from the Credit Union, from other financial institutions 
participating in the Visa program and from automated teller machines (ATMs), such as a Visa 
ATM Network, which provide access to the Visa system. (Not all ATMs provide such access.)
You will need to use your Personal Identification Number (PIN) to obtain a cash advance from 
an ATM. The monthly statement will identify the merchant, electronic terminal or financial
institution at which transactions were made, but sales, cash advances, credit or other slips
cannot be returned with the statement. You will retain the copy of such slips furnished at the 
time of the transaction in order to verify the monthly statement. We may make a reasonable
charge for photocopies of slips you request.

11. Returns and Adjustments. Merchants and others who honor the Card may give credit for 
returns or adjustments, and they will do so by sending us a credit slip which we will post to
your Account. If your credits and payments exceed what you owe us, we will hold and apply
this credit balance against future purchases and cash advances, or if it is $1 or more, refund it 
on your written request.

12. Foreign Transactions. Payments, purchases and cash advances made in foreign currencies 
will be charged to your account in U.S. dollars. The exchange rate between the transaction
currency  and  the  billing  currency  used  for  processing  international  transactions  is  a  rate 
selected  by  Visa  from  the  range  of  rates  available  in  wholesale  currency  markets  for  the 
applicable central processing date, which the rate may vary from the rate Visa itself receives, 
or the government mandated rate in effect for the applicable central processing date, plus the 
1% International Transaction Fee.

©2016 MAX. Federally insured by NCUA. For qualified borrowers. Certain restrictions apply. Secured Credit Card 08/2016 
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Visa® SECURED CREDIT CARD AGREEMENT

13. Plan Merchant Disputes. We are not responsible for the refusal of any plan merchant
or financial institution to honor your Card. We are subject to claim and defenses (other than
tort claims) arising out of goods or services you purchase with the Card only if you have made 
a good faith attempt, but have been unable to obtain satisfaction from the plan merchant,
and: (a) your purchase was made in response to an advertisement we sent or participated in
sending you, or (b) your purchase cost more than $50 and was made from a plan merchant in 
your state or within 100 miles of your home. Any other disputes you must resolve directly with 
the plan merchant.

14. Security  Interest.  To  secure  your  Account,  you  grant  us  a  purchase  money  security
interest under the Uniform Commercial Code in any goods you purchase through use of the
Card. If you default, we will have the right to recover any of these goods which have not been 
paid for through our application of your payments in the manner described in Paragraph 6.

15. Security Agreement. The payment of the Credit Card Account shall be secured by all of
my Credit Union accounts, shares and certificates (excluding Individual Retirement Accounts) 
I now have or hereafter may have including all accounts I have a right to withdraw from or an 
ownership interest in. I am giving this interest to secure repayment of my credit card account 
as well as any other amounts I now owe or will owe the Credit Union. I am giving the Credit
Union a security interest in all present and future shares in my account I have with the Credit 
Union or in which I have an interest. I authorize the Credit Union to take those funds, shares
or certificates and apply it to my debt if I am in default. The Credit Union may, solely at its
option, allow me to withdraw a portion of my shares without affecting its security interest.
Withdrawals may not be allowed if it will reduce the amount of my shares in the Credit Union 
below the amount of my debt. I am not giving a security interest in an IRA, SEP, KEOUGH, or
any other account which, if pledged, would result in the loss of special tax treatment under the 
Internal Revenue Code.

16. Effect of Agreement. This Agreement is the contract which applies to all transactions on 
your Account even though the sales, cash advances, credit or other slips you sign or receive
may contain different terms. We may amend this Agreement from time to time by sending
you any advance written notice required by law. Any amendment to this Agreement will take 
effect on the day it is mailed unless advance notice is required by law. Your use of the Card
thereafter will indicate your agreement to the amendments. To the extent the law permits, and 
we indicate in our notice, amendments will apply to your existing Account balance as well as 
to future transactions.

17. Governing  Law.  The  terms  and  conditions  of  this  Agreement  are  governed  by  and
construed in accordance with the laws of the State of Alabama and any applicable Federal law.

18. Delay in Enforcement. No delay in enforcement of our rights under this agreement will
result in any loss of our rights or relieve you of any of your obligation.

19. Invalidity  of  Provisions  and  Captions.  If  any  provision  of  this  agreement  is  deemed
invalid the rest of this Agreement will remain in full force and effect. The paragraph headings 
are for convenience only and do not form a part of this Agreement.

20. Designated/Pledged Share Account. You agree to maintain a Designated Credit Union
Share Account with a minimum balance equal to the credit limit established for your account. 
You understand and agree that shares pledged as security will earn dividends at the rate for
similar accounts. You pledge under the Uniform Commercial Code, the Share Account listed
on MAX Credit Union’s Secured Visa Platinum Credit Card Application to the credit union as
security for any balance owed on your account. If you request a higher limit in the future, you 
understand  and  agree  that  you  will  be  required  to  deposit  additional  funds  into  the  Share
Account equal to the amount of the increase you requested, and the credit union will hold
this amount, in addition to the amount already held in the Share Account. You understand and 
agree the pledged funds will not be accessible for withdrawal, and you agree not to withdraw 
or attempt to withdraw pledged funds until the credit card account has been closed and any
cards issued have been returned to MAX Credit Union. You understand and agree that pledged 
funds may be held for up to 30 days after you close your credit card account. You understand 
and agree that if you dispute any charges owed to the credit union, you will not rescind this
agreement until such disputes are resolved. You understand and agree that the credit union
may transfer pledged funds from the Share Account at any time if this account is delinquent, 
inactive, or if we suspend or terminate your credit privileges. Upon any of these occurrences, 
the  Share  Account  and  the  credit  card  account  will  be  closed.  Any  remaining  funds  in  the
pledged Share Account will be transferred to your primary Share Account, or otherwise paid to 
you via check, cash or any other method at our option.

©2016 MAX. Federally insured by NCUA. For qualified borrowers. Certain restrictions apply. Secured Credit Card 08/2016 
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Visa® SECURED CREDIT CARD BILLING RIGHTS

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  LOAN  ACCOUNT 
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. •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 loan account automatically from your savings or share 
draft account, 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 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 report 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 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 service. 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 the credit card issuer owns or operates the merchant, or mailed 
you the advertisement for property or services.

INTEREST RATES AND INTEREST CHARGES

ANNUAL PERCENTAGE RATE (APR)
for Purchases, Balance Transfers and Cash 
Advances

Your APR will be 6.00% to 18.00%.

Variable Rate Information

How to Avoid Paying Interest on Purchases

Your APR will vary in relation to an index plus a margin of 6.00%. 
The index will be the Prime Rate (rounded to the nearest 1/4 of 
1%) and is the highest rate published in the money section of the 
Wall Street Journal.

Your due date is at least 25 days after the close of each billing 
cycle. We will not charge you any interest on purchases if you pay 
your entire balance by the due date each month. We will begin 
charging interest on balance transfers and cash advances on the 
transaction date.

Minimum Interest Charge

None

For Credit Card Tips from the
Consumer Financial Protection Bureau

To learn more about factors to consider when applying for or us-
ing a credit card, visit the website of the Consumer Financial Pro-
tection Bureau at http://www.consumerfinance.gov/learnmore

Annual Fee

Transaction Fees
• Balance Transfer
• Cash Advance
•

Foreign Transaction

Penalty Fees
•

Late Payment

• Over the Credit Limit
• Returned Payment

FEES

None

None
None
1% International Transaction Fee

5% of the amount of the scheduled payment in default, with a 
minimum charge of $0.50 and a maximum charge of $25.00 
None
Up to $30.00

How We Will Calculate Your Balance: We use a method called “Average Daily Balance (including new purchases)”. See your account agreement for more details.

©2016 MAX. Federally insured by NCUA. For qualified borrowers. Certain restrictions apply. Secured Credit Card 08/2016
Document Control #: PDF.SECVISAAGMT

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