NOTICE OF CHANGE IN TERMS 
for 
BECU CREDIT CARD ACCOUNTS 

BECU  is  amending  the  terms  of  its  credit  card  accounts  effective  on  August  1,  2010.    This 
Notice  contains  (i)  a  summary  of  the  changes  in  terms;  (ii)  the  replacement  provisions  to  the 
Agreement; and (iii) an explanation of the balances to which the rate change applies.   

Summary Of Change In Terms 

What is changing?  
Currently the interest rate on your credit card account is variable. Beginning August 1st 2010, 
we will convert your variable interest rate to a non-variable rate.   

What happens to my current interest rate? 
Your actual interest rate will not change. The new non-variable ANNUAL PERCENTAGE RATE 
applicable  to  your  credit  card  account  as  of  August  1,  2010  will  be  the  same  as  the  current 
ANNUAL PERCENTAGE RATE that is disclosed on a separate document when you open your 
account.   

.    To  implement  these  changes,  your  Consumer 
Replacement  Provisions  to  the  Agreement
Loan and Credit Card Credit and Security Agreement is amended effective August 1, 2010 as 
follows: 

Credit  Card  Interest  Rate.    Section  I.C.6.  of  your  Consumer  Loan  and  Credit  Card 
Credit And Security Agreement is revised to read: 

6.    Daily  Periodic  Rate  (DPR)  and  ANNUAL  PERCENTAGE 
RATE (APR).  The DPR and corresponding APR used to calculate 
the  FINANCE  CHARGE  for  your  Account  will  be  stated  on  a 
document  provided  to  you  when  you  open  your  Account.    (That 
document  is  a  part  of  this  Agreement.)    After  you  open  your 
Account,  rate  information  will  be  provided  in  periodic  statements 
that we send you. 

Application of Credit Card Rate Change to Balances 

The non-variable rate will apply to transactions made on credit card accounts on or after 
the effective date of August 1, 2010.  Any transactions made before that date will be subject to 
the existing variable rate and terms. While the existing rate is variable, it is currently set at the 
minimum  rate  for  your  account.  Based  on  these  terms,  this  means  that  transactions  made 
before August 1, 2010 will continue to receive the minimum rate on your account (your current 
rate) until they are paid off. For accounts that are currently subject to a default or penalty rate, 
that  rate  will  remain  in  effect  until  the  account  qualifies  for  the  standard,  non-default/penalty 
rate.  

BECU wants to make sure you fully understand these changes to your account. If you have any 
questions or would like additional information, please contact us at 1-800-233-2328. As always, 
you can count on competitive rates, fewer fees and member-first service that come along with 
your locally-issued BECU Visa credit card.   

BECU 653 3/30/2010 

[1] 

 
 
 
 
 
 
 
 
 
LOAN
AGREEMENTS 
AND
DISCLOSURES

Effective December 2009

This Booklet Contains Your:

>>  Consumer Loan and Credit Card          

Credit and Security Agreement

>>  Your Billings Rights Notice

>>  Loan Payment Protection Contract 

Initial Disclosures

K E E P  T H I S B O O K LET 
F O R   YO U R R E C O R D S

 
TABLE OF CONTENTS

  I.  CONSUMER LOAN AND CREDIT CARD

  CREDIT AND SECURITY AGREEMENT ...............1

  A.  THE CREDIT AND SECURITY AGREEMENT

  (CONSUMER LOAN PLAN) .............................................1
  1.  How the Consumer Loan Plan Works ...............................1
  2.  Subaccounts Included in the Plan ......................................2
  3.  Subaccount Credit Advances and Access..........................2
Joint Plans .............................................................................2
  4. 
  5.  Credit Limit .........................................................................3
  6.  Promise to Pay .....................................................................3
  7.  Periodic Statements ............................................................4
  8.  Security Agreement ............................................................4
  9.  Finance Charges ..................................................................7
 10.  Default ................................................................................10
 11.  Fees and Charges ..............................................................12
 12.  Voluntary Payment Protection ........................................13
 13.  Amendments .....................................................................13 
 14.  Enforcement ......................................................................14
 15.  Assignment ........................................................................14
 16.  Notices ...............................................................................14
 17.  Credit Information/Financial Statements.......................14
 18.  Governing Law ...................................................................14
 19.  Acknowledgment and Agreement ...................................14
 20.   Captions and Catch lines for Reference Only ................15
  B.  ADDITIONAL TERMS APPLICABLE TO PERSONAL

  LINES OF CREDIT ...........................................................15
  1. 
Joint Accounts ....................................................................15
  2.  Promise to Pay ...................................................................15
  3.  Subaccount Advances and Access ....................................15
  4.  Fees and Charges ..............................................................16
  C.  ADDITIONAL TERMS APPLICABLE TO CREDIT

  CARDS ...............................................................................16
  1.  Responsibility .....................................................................16
  2.  Liability ...............................................................................17
  3. 
Internet Transactions ........................................................17
  4.  Purchases and Cash Advances .........................................17
  5.  Convenience Checks .........................................................17
  6.  Daily Periodic Rate (DPR) and Annual Percentage

  Rate (APR) .........................................................................17 
  7.  Finance Charges ................................................................18
  8.  How to Determine Finance Charges: ..............................18
  9.  Other Fees and Charges ...................................................19
 10.  Change in Terms (including Finance Charges) ...............20
 11.  Security Interest ................................................................20
 12.  The Minimum Periodic Payment Required ....................20
 13.  Lost, Stolen, or Unauthorized Use of Your Card ............21
 14.  Additional Provisions ........................................................21
  II.  YOUR BILLING RIGHTS .................................................23
  1.  Notify Us in Case of Errors or Questions

  About Your Billing Statement ..........................................23

  2.  Your Rights and Our Responsibilities After We

  Receive Your Written Notice............................................23
  3.  Special Rule for Credit Card Purchases ..........................24

 
 
 
 
 
 
 
 III.  BECU VISA REWARDS PROGRAM OPTION ..............24
  1.  Enrolling in the BECU Rewards Program .......................24
 IV.  LOAN PAYMENT PROTECTION CONTRACT ...........25
  I.  Deﬁ nitions ..........................................................................25
  2.  General Provisions ............................................................26
  3.  Protected Events ...............................................................27
  4.  Non-Protected Events ......................................................29 
  5.  Concurrent Protected Events ..........................................30   
  6.  Recurrent Events ...............................................................30
  7.  Status of the Loan After a Protected Event ...................30 

I. CONSUMER LOAN AND CREDIT 
CARD CREDIT AND SECURITY 
AGREEMENT 

A.  THE  CREDIT  AND  SECURITY  AGREEMENT  (CONSUMER  LOAN 
PLAN).  This  Credit  and  Security  Agreement  (“Agreement”),  which 
includes  Truth  in  Lending  Act  and  Fair  Credit  Billing  Disclosures, 
governs  your  Plan  (“Plan”  “Consumer  Loan  Plan”)  with  Boeing 
Employees’ Credit Union (“BECU”). Your Consumer Loan Plan involves 
open-end loans for personal, family, or household purposes excluding 
all loans secured by real property or a dwelling. In this Agreement the 
words “you,” “your,” and “yours” mean any person, which includes 
the applicant and co-applicant, who signs in acceptance of the Plan 
and the words “we,” “us,” and “our” mean BECU. When you sign as 
a loan applicant, you agree individually, and if there is a co-applicant, 
jointly  and  severally  with  any  co-applicant,  to  be  bound  by  all  the 
terms and conditions set out in this Credit and Security Agreement, 
Credit and Security Agreement Addendum (“Addendum”) as amended 
from time to time; any Loan Advance Voucher, Loan Proceeds Check, 
Power of Attorney, if applicable, and any access devices given with 
any future credit advances, which shall collectively govern your Plan 
and are incorporated herein by reference. No oral statement by any 
Credit Union employee is included in this Agreement. While you may 
not have requested or been approved for a particular feature under 
your Plan, you agree that if at any time in the future you request or are 
approved for any such a credit advance, your relationship with BECU 
for that subaccount will be governed by these agreements. 

1. How the Consumer Loan Plan Works. The Plan is a multi-featured, 
open-end credit plan. We contemplate that, from time to time, you will 
use your Plan to borrow money from us (“credit advance”). The Plan 
is  a  program  that  will  enable  you  to  meet  many  of  your  consumer 
borrowing needs from the date the application is received. 

Establishing Your Plan. To establish your Plan, you must complete 
and sign either the Master Credit Application or the Membership and 
Master  Credit  Application  form.  Each  time  you  submit  either  form, 
you request a Plan to be established for you, either individually if the 
application is in the name of only one applicant or jointly if there is 
more than one applicant. At any given time, you may have multiple 
active Plans. 

Borrowing  Under  Your  Plan.  To  borrow  under  the  Plan  you  must 
activate each of the Plan’s borrowing features individually. You may 
do this by submitting a credit advance request as explained below. 
Upon BECU’s approval of your credit advance request, that feature, 
or  subaccount,  of  the  Plan  becomes  activated  and  available  for 
borrowing.  At  the  same  time  you  apply  for  a  loan  secured  by  real 
property  or  a  dwelling,  BECU  will  establish  a  Plan  from  which  you 
may, at your option, request consumer loan credit advances. Home 
equity and home equity line of credit loans and other loans secured 
by real property or a dwelling are not part of this Plan and you will be 
provided separate loan documents upon closing of those loans. 

1

 
2. Subaccounts Included in the Plan. The Addendum lists the different 
types of credit advances we offer (called “subaccounts,” “loans” or 
“features”)  and  includes  the  daily  periodic  rate  and  corresponding 
annual  percentage  rate  and  any  fees  and  charges  that  may  be 
imposed under the Plan. If additional terms and conditions will apply 
to a particular feature, we’ll provide a Loan Advance Voucher which 
contains  a  schedule  for  determining  interest  rate,  payment  amount 
and approximate repayment term related to the particular advance if 
other than as set out in this Agreement and the Addendum. Certain 
features of the Plan, such as Line of Credit advances or Credit Cards, 
are also subject to additional terms described later in this Agreement 
that  may  vary  from  the  general  Plan  terms  set  out  below.  In  this 
Agreement,  the  word  “Loans”  mean  all  types  of  credit  advance 
subaccounts (including Line of Credit and Credit Card loans listed 
on the Addendum, except when speciﬁ cally referring to a Line of 
Credit  loan  (“Line  of  Credit”)  or  Visa  Credit  Card  loan  (“Credit 
Card”).

3. Subaccount Credit Advances and Access. 

a.  How  to  establish  a  subaccount  under  the  Plan.  You  may 
submit a credit advance request in any manner authorized by us. 
Any credit advance we make shall establish a loan subaccount 
under  your  Plan.  When  you  have  multiple  active  Plans  and 
you make a loan request, it is your responsibility to inform us 
under  which  of  these  Plans  to  establish  your  loan.  From  the 
date  of  the  Plan  application,  we  may  require  that  you  update 
the information you submitted to us when you established your 
Plan in order for us to evaluate your credit advance request. This 
does not mean that we are unconditionally required to make a 
loan under the Plan each time you submit a credit request and 
we may also refuse an advance request. We may do this if you 
are  in  default  of  any  agreement  with  us,  we  do  not  approve 
the  collateral  offered  to  secure  a  loan,  we  reasonably  deem 
ourselves insecure, there has been an adverse change in your 
ﬁ nancial situation, or if we amend or terminate the Plan or your 
participation  in  it.  The  minimum  loan  for  subaccounts,  other 
than  line  of  credit  loans,  credit  card  loans,  and  certiﬁ cate  of 
deposit secured loan, is $250. The minimum loan for certiﬁ cate 
of deposit secured subaccounts is $500. 

b.  Additional  Access  Devices  for  Lines  of  Credit  and  Credit 
Cards. You may request any additional access device, transfer 
instrument,  or  other  negotiable  orders  which  we  may  make 
available  in  the  future.  You  understand  that  this  request  is 
voluntary, and you may decline the new services at the time the 
new services are offered to you. 

4. Joint Plans. You understand and agree that while the Joint Plan is 
in effect, you and any co-applicant: (1) has each authorized the other 
to individually request, authorize, or receive credit advances; (2) has 
each  agreed  to  be  jointly  and  severally  liable  for  repayment  of  all 
amounts owed and for any loans obtained; and (3) has each agreed 
to all of the loan terms and conditions, even if you did not speciﬁ cally 
authorize or request the credit advance or receive any beneﬁ t from it. 
If any one of you does not wish any future loans under the Plan or is 
unwilling to be personally liable for them, any one of you must write 

2

 
 
 
to BECU to terminate the Plan and the termination will be effective as 
to all of you. 

5.  Credit  Limit.  If  we  approve  your  request  for  a  subaccount,  we 
may, but do not have to, establish a credit limit on certain loans. If we 
establish a credit limit for a loan, you agree not to attempt to obtain 
more credit than the amount of your credit limit. If you temporarily 
exceed your credit limit, you understand such credit does not increase 
your  credit  limit  and  you  agree  to  pay  us  that  excess  amount,  any 
overlimit  fee  and  applicable  ﬁ nance  charges,  immediately.  We  can 
increase or decrease your loan credit limit at our discretion. We will 
notify you in writing on a Loan Advance Voucher, on your statement, or 
by separate notice if the amount of your credit limit goes up or down. 
We  may  suspend  or  close  your  credit  limit  or  otherwise  terminate 
your  ability  to  use  your  Account.  We  may  do  this  at  any  time  and 
for any reason. Your obligations under this Agreement continue even 
after we have done this. You may cancel your credit limits established 
for applicable loans upon written request to BECU. If your account 
is  suspended,  you  must  immediately  return  any  authorized  access 
devices,  including  convenience  checks  and  credit  cards.    Any  use 
of  a  subaccount,  access  device  or  service  after  suspension  will  be 
considered fraudulent.

6. Promise to Pay. You promise to pay BECU the total of all credit 
advances  under  each  subaccount  (including  any  credit  advances 
requested by a co-borrower), ﬁ nance charges, and other amounts set 
forth in this Agreement on the payment terms set forth below. This 
includes any requests for payments to a third party or for deposit to 
a savings or checking account of yours. Payments must be made in 
U.S. Dollars. 

a.  Payment  Methods.  You  promise  to  pay  for  subaccounts 
under  this  Agreement  by  automatic  transfer  from  shares  or 
deposits, direct deposit, or by personal check, draft, electronic 
funds transfer, or wire transfer. If you pay by automatic transfers, 
you understand that it is your responsibility to be sure that there 
are adequate funds in your account to satisfy the payment on 
the speciﬁ ed date or your loan will become past due. If you have 
authorized  automatic  transfers  from  your  account,  you  grant 
BECU permission to adjust your loan payments up to the nearest 
whole dollar amount and add any fees related to the transfer or 
release of collateral to your ﬁ nal payment. You must make your 
scheduled payments on loans under this Agreement regardless 
of the payment method you select to make payments. 

b. Minimum Payment. You agree that you will pay at least the 
payment amount or required minimum payment speciﬁ ed in this 
Agreement or set forth on the Loan Advance Voucher or payment 
coupons for your loan, on or before the due date indicated on 
your statement or payment coupon. Minimum payments include 
all amounts past due, late charges, if applicable, any Voluntary 
Payment Protection costs and the payment amount. Payments 
will be applied ﬁ rst to late and other charges (other than ﬁ nance 
charges), then to accrued ﬁ nance charges, and the remainder, 
if any, to the balance, unless otherwise agreed to by BECU or 
required by applicable law. 

3

c. Crediting Payments.  Payments received at BECU, P.O. Box 
97050, Seattle, WA 98124-9750 at or before 5:00 PM Paciﬁ c 
Time on any business day will be credited to your Account as 
of  that  date;  payments  received  by  mail  at  that  address  after 
5:00 PM Paciﬁ c Time, on a weekend or federal holiday will be 
posted to your Account as of the next business day. Crediting 
to your Account may be delayed up to ﬁ ve days if payment is 
received by mail at any other address or not accompanied by 
any remittance slip or statement we provide.

d.  Pre-payment  and  Irregular  Payments.  You  may  pay  all 
or  part  of  your  loan(s)  early,  at  any  time,  without  paying 
any  penalty.  However,  payments  in  excess  of  your  minimum 
payment  will  not  relieve  you  of  your  obligation  to  make  your 
subsequent  minimum  payments  on  the  dates  when  due. 
Instead of advancing your payment due date, a prepayment or 
early payment will reduce the principal amounts owing on your 
subaccount. BECU reserves the right to refuse partial payments. 
We may accept late payments, partial payments and payments 
marked  “payment  in  full”  that  are  not  sent  to  the  following 
address without losing our rights under this Agreement. 

ALL COMMUNICATIONS CONCERNING ANY DISPUTED DEBTS, 
INCLUDING ANY CHECK OR INSTRUMENT TENDERED AS FULL 
SATISFACTION OF A DEBT (INCLUDING LOANS), SHALL BE SENT 
ONLY TO THE ATTENTION OF: Risk Management Representative 
–  Account  Dispute,  P.O.  Box  97050,  Seattle,  WA  98124-9750

7. Periodic Statements. If you have an outstanding debit or credit 
balance for a subaccount in excess of $1.00 at the end of a billing 
cycle/statement period, we will send you a statement to the address 
shown  in  your  records  reﬂ ecting  balances  and  activity  in  that 
subaccount. 

8. Security Agreement 

a.  Security  Interest.  For  valuable  consideration,  you  grant 
BECU  a  security  interest  under  the  Uniform  Commercial 
Code in all collateral described in any Loan Advance Voucher, 
including  any  extension,  renewal,  modiﬁ cation  of  such  loan, 
which  accompanies  this  Agreement,  to  secure  all  your  other 
obligations  to  BECU,  now  or  in  the  future  (excluding  those 
secured  by  a  dwelling  or  real  property).  The  security  interest 
includes  all  attachments,  accessories,  accessions,  parts, 
supplies,  upgrades  or  improvements  to  such  property  even 
if  acquired  by  you  after  the  date  of  any  credit  advance  (for 
example  tires  or  batteries  attached  to  a  car).  All  collateral 
(other than collateral consisting of a dwelling, real property or 
household goods) securing one loan will secure all your other 
obligations to BECU including all existing and future loans. 
You represent that except for the security interest granted under 
this Agreement, you own the collateral free and clear of all liens, 
security  interests  and  other  encumbrances.  You  agree  not  to 
sell, lease, further encumber or transfer the collateral or remove 
the collateral from the state in which you reside without prior 
written  permission  from  us.  You  agree  that  BECU  may  come 
upon your premises and inspect the collateral at any reasonable 

4

 
time without notice. You agree to give us fourteen (14) calendar 
day’s notice before changing your name, your address or the 
address where the collateral is kept. You agree to deliver any 
certiﬁ cate of title to the collateral to us showing BECU’s security 
interest in the collateral. 

b. BECU Lien. You agree BECU has a lien on all your shares, 
deposits, and dividends in all joint and individual accounts held 
by you, now and in the future, to the extent of your obligations to 
BECU. You agree that BECU’s lien is independent of any security 
agreement and BECU may enforce its lien in any manner, at any 
time  allowed  by  applicable  law.  You  agree  that  you  own  any 
shares pledged and that there are no liens against them other 
than ours. BECU may, at its sole option, allow you to withdraw a 
portion of your shares or deposits without affecting its security 
interest.

c.  Pledge  of  Shares,  Deposit  Accounts  and  Certiﬁ cates  of 
Deposit. You pledge all your BECU shares, deposit accounts, 
and certiﬁ cates of deposit in which you have an interest, now 
and in the future, as security for all credit advances made under 
this Agreement. However, this pledge will not apply to retirement 
or other accounts to the extent that applicable law precludes the 
pledge of such accounts, or to loans secured by real property 
or  a  dwelling.  You  agree  that  we  need  not  retain  or  possess 
any  certiﬁ cate  or  evidence  of  account  to  enforce  our  security 
interest. You understand that if you default on your Plan, BECU 
may apply all that is pledged to repayment of your loan(s). Credit 
advances secured by a pledge under this paragraph for which 
an automatic hold is placed on the account are not necessarily 
the same as the credit advances secured by accounts described 
in the Addendum. Only credit advances secured by speciﬁ cally 
identiﬁ ed  accounts  subject  to  automatic  holds  qualify  for  the 
rates for credit advances secured by pledged accounts shown 
in the Addendum.

By  completing  and  signing  the  Plan  application,  you  signify 
your speciﬁ c intent to pledge to us and to grant us a security 
interest in all your individual and joint BECU share and deposit 
accounts  you  have  with  us,  now  or  in  the  future  (excluding 
retirement or other accounts to the extent that applicable law 
precludes the pledge of such accounts), to secure your BECU 
loans  under  the  Plan  (including  the  credit  card  subaccount). 
You  authorize  us,  without  further  notice  to  you,  to  apply  the 
balances in these account(s) to pay any amounts due under the 
Plan if you should default.

d.  Pledge  of  Securities.  For  all  securities  pledged  to  BECU, 
you represent that you have obtained all required consents and 
we  shall  retain  possession  of  the  securities  until  all  amounts 
owed  to  us  are  paid  in  full.  Unless  you  are  in  default  under 
this  Agreement,  you  may  retain  all  voting  rights  with  respect 
to  the  securities  except  with  respect  to  any  corporate  action 
requiring  a  shareholder  vote  such  as  a  proposed  dissolution, 
liquidation,  merger,  or  sale  of  substantially  all  of  the  assets 
of  the  corporation  or  other  entity  that  issued  such  securities, 

5

where  you  agree  that  we  will  have  the  right  to  exercise  all 
voting rights. You agree to notify us if you receive any notices 
of corporate action requiring a shareholder vote. You agree to 
notify BECU of any stock dividend or stock split and to surrender 
any  certiﬁ cates  issued  to  you  in  connection  therewith.  In  the 
event the value of such securities declines to a point at which 
we deem ourselves insecure we may sell the securities, request 
additional  securities  to  be  pledged  or  require  you  to  pay  the 
loan balance down. BECU may sell any securities in a manner 
consistent with applicable federal and state securities laws. 

e.  Property  Maintenance/Insurance.  You  agree  that  the 
collateral securing this loan will be for personal use only and 
will  not  be  used  as  a  dwelling.    Further,  you  agree  to  keep 
the collateral in good repair and to maintain the property in a 
condition  that  does  not  adversely  affect  its  value.  You  agree 
(a) to purchase and maintain the following property insurance 
coverage  on  the  collateral  in  the  form  of  vehicles,  aircraft  or 
vessels for its full insurable value, with the Credit Union as loss 
payee,  against  loss  and  damage:  minimum  liability  for  bodily 
injury or death to any one person in the amount of $100,000, 
and for any one injury in the amount of $300,000; and minimum 
property damage insurance of $50,000; (b) that the insurance 
must  provide  at  least  comprehensive  ﬁ re,  theft  and  collision 
coverage with deductibles of not more than $1,000 for vehicles 
or 10% of the vessel or recreational vehicle loan balance; (c) 
to  provide  us  with  evidence  of  this  coverage  upon  request; 
and  (d)  we  may  receive  any  payment  of  loss  or  returned 
premium,  and  apply  the  amounts  received,  at  our  option,  to 
repair or to replace the vehicle or to your indebtedness under 
this Agreement, including indebtedness not yet due. You may 
obtain  property  insurance  through  any  company  you  choose 
that is satisfactory to us. If insurance beneﬁ ts do not pay the 
loan balance in full, you will remain responsible for the unpaid 
balance due and for the ﬁ nance charges which will continue to 
accrue on the unpaid subaccount balance. We may also charge 
your loan any costs necessary to protect our security interest in 
the collateral including paying any taxes, any fees and charges 
or making payments to cure defaults under any existing liens on 
the collateral. You agree we may demand full payment of such 
costs or we may increase your payment amounts to an amount 
sufﬁ cient  to  pay  the  amount  in  a  period  generally  no  greater 
than a year. We have no obligation to make any payments under 
this paragraph. YOU AGREE WE MAY EITHER DEMAND FULL 
PAYMENT OF SUCH COSTS AND AMOUNTS OR WE INCREASE 
YOUR PAYMENT AMOUNTS.

WARNING-UNLESS  YOU  PROVIDE  US  WITH 
EVIDENCE  OF  THE  INSURANCE  COVERAGE  AS 
REQUIRED BY OUR LOAN AGREEMENT, WE MAY 
PURCHASE  INSURANCE  AT  YOUR  EXPENSE  TO 
PROTECT OUR INTEREST. THIS INSURANCE MAY, 
BUT NEED NOT, ALSO PROTECT YOUR INTEREST. 
IF  THE  COLLATERAL  BECOMES  DAMAGED,  THE 

6

COVERAGE  WE  PURCHASE  MAY  NOT  PAY  ANY 
CLAIM YOU MAKE OR ANY CLAIM MADE AGAINST 
YOU. YOU MAY LATER CANCEL THIS COVERAGE 
BY  PROVIDING  EVIDENCE  THAT  YOU  HAVE 
OBTAINED  PROPER  COVERAGE  ELSEWHERE. 
YOU ARE RESPONSIBLE FOR THE COST OF ANY 
INSURANCE  PURCHASED  BY  US.  THE  COST 
OF  THIS  INSURANCE  MAY  BE  ADDED  TO  YOUR 
LOAN BALANCE. IF THE COST IS ADDED TO THE 
LOAN  BALANCE,  THE  INTEREST  RATE  ON  THE 
UNDERLYING LOAN WILL APPLY TO THIS ADDED 
AMOUNT. THE EFFECTIVE DATE OF COVERAGE MAY 
BE  THE  DATE  YOUR  PRIOR  COVERAGE  LAPSED 
OR  THE  DATE  YOU  FAILED  TO  PROVIDE  PROOF 
OF  COVERAGE.  THE  COVERAGE  WE  PURCHASE 
MAY  BE  CONSIDERABLY  MORE  EXPENSIVE 
THAN  INSURANCE  YOU  CAN  OBTAIN  ON  YOUR 
OWN  AND  MAY  NOT  SATISFY  WASHINGTON’S 
MANDATORY LIABILITY INSURANCE LAWS. 

f.  Additional  Documents  and  Power  of  Attorney.  You  agree 
to sign any other documents, such as certiﬁ cates of title, and 
authorize us to ﬁ le ﬁ nancing statements as may be necessary 
to perfect or protect BECU’s security interest. To expedite the 
release  or  transfer  of  your  interest  in  any  titled  collateral  in 
which you have granted BECU a security interest and to which 
we hold the certiﬁ cate of title, you hereby give BECU power of 
attorney to sign your name to such certiﬁ cate and to apply in 
your name for the issuance of a certiﬁ cate of title to any titled 
collateral in which you became owner. BECU may sign any other 
documents (such as certiﬁ cates of title) to perfect our security 
interest and you authorize BECU to ﬁ le ﬁ nancing statements to 
perfect BECU’s security interest. You agree to provide us with 
collateral control or other agreements, in form and substance 
satisfactory to BECU with such third parties as we may deem 
necessary  to  perfect  and  maintain  the  priority  of  our  security 
interest. 

9. Finance Charges 

a.  Default/Penalty  Rate.  If  your  total  Minimum  Periodic 
Payment  is  not  paid  within  29  days  of  the  payment  due  date 
(within  27  days  during  the  February  credit  reporting  activity 
period  or  28  days  for  February  leap  year  reporting  activity 
period), twice within any 12 month period or your subaccount 
is considered in default for any reason, the Daily Periodic Rate 
used in calculating the FINANCE CHARGE (and corresponding 
ANNUAL PERCENTAGE RATE) will be changed to the Default/ 
Penalty  Rate  disclosed  on  the  Credit  and  Security  Agreement 
Addendum,  or  the  highest  rate  allowed  by  law.  If  your  Daily 
Periodic  Rate  (and  corresponding  ANNUAL  PERCENTAGE 
RATE)  is  increased  as  described,  it  may  be  subsequently 
reduced at our discretion after a minimum of twelve months at 

7

 
which time it is determined that no payment for any amounts 
owed BECU has been late during the 12-month period, and your 
other  accounts  with  BECU  are  in  good  standing  (current  and 
non-negative). Rate changes shall be effective beginning on the 
ﬁ rst day on the next Billing Cycle following the late payment or 
determination. A loan whose rate is reduced will be subject to 
subsequent  increases  should  future  payment  be  missed  in  a 
manner described within this section. If the Daily Periodic Rate 
and corresponding ANNUAL PERCENTAGE RATE increase, the 
FINANCE  CHARGE  will  increase  and  your  minimum  payment 
may be higher. 

b.  When  Finance  Charges  Accrue.  You  will  pay  a  ﬁ nance 
charge  calculated  on  the  daily  unpaid  balance  of  each  loan 
under  this  Plan,  and  unless  otherwise  prohibited  by  law, 
the  unpaid  balance  will  include  any  unpaid  fees  or  charges, 
including  ﬁ nance  charges.  This  means  that  interest  will  be 
compounded if ﬁ nance and other charges are not paid on or 
before  the  date  they  are  charged  to  your  loan.  The  ﬁ nance 
charges will begin to accrue as of the date each credit advance 
is made and/or each fee or charge is added to your subaccount. 
The  ﬁ nance  charge  based  on  your  outstanding  balance  is 
computed  by  multiplying  the  unpaid  balance  of  each  loan  by 
daily periodic rates and multiplying the results by the number 
of days since your last loan payment. When credit advances are 
added  to  your  existing  loan,  the  ﬁ nance  charge  is  computed 
on the balance from the date of the last payment to the date of 
the new credit advance, then on the total outstanding principal 
balance to the date of payment. 

c. How to Determine Finance Charges. The unpaid principal 
balance is the amount of the loan outstanding which remains 
unpaid at the close of each business day after all transactions 
for the day have been entered. The total ﬁ nance charge is the 
sum of the ﬁ nance charge applied to your outstanding balance 
and any loan fees, credit report fees, title report fees or appraisal 
fees,  or  other  ﬁ nance  charges  imposed  as  described  below 
and/or  in  the  Addendum  and  will  be  shown  on  your  periodic 
statement. Your loan payments and BECU’s credit advances are 
entered when made. Credit advances may be directly deposited 
to one of your deposit accounts and will be subject to a ﬁ nance 
charge  from  the  date  of  deposit  even  if  you  do  not  withdraw 
the  money  immediately.  Payments  will  be  applied  ﬁ rst  to  late 
and other charges (other than ﬁ nance charges), then to accrued 
FINANCE CHARGES, and the remainder, if any to the principal 
loan balance, unless otherwise agreed to by BECU or required 
by applicable law. 

d. Daily Periodic Rate and Corresponding Annual Percentage 
Rate.  The  Daily  Periodic  Rate  and  ANNUAL  PERCENTAGE 
RATE  for  which  you  initially  qualify  for  now  and  in  the  future 
may depend on the type of loan subaccount you request, the 
loan  repayment  period,  your  credit  qualiﬁ cations,  credit  and 
employment history and residential status. The Daily Periodic 
Rate  and  corresponding  ANNUAL  PERCENTAGE  RATE  for 
each  loan  subaccount  under  your  open-end  credit  plan  are 

8

set forth in the Credit and Security Agreement the  Addendum 
accompanying  this  Agreement  and/or  relevant  Loan  Advance 
Voucher. Your loan rate on any subaccount is subject to change 
with additional advances, based on your credit history. The Credit 
Union may change the rates if offers from time to time and may 
review  your  credit  qualiﬁ cations  periodically  and  adjust  your 
Daily Periodic Rate and corresponding ANNUAL PERCENTAGE 
RATE  based  on  changes  in  your  credit  qualiﬁ cations.  If  you 
receive your initial Loan Advance Voucher after the time of the 
initial advance on your account, you may cancel this Agreement 
without  obligation  by  providing  the  Credit  Union  with  written 
notice  and  returning  all  of  the  funds  advanced  to  you  within 
three  calendar  days  of  the  initial  advance.  Once  you  use  the 
account  funds  in  any  manner  or  negotiate  a  loan  proceeds 
check, you waive any right to cancel this Agreement.

e. Automatic Payment Rate Loans. In this Agreement we refer 
to  ﬁ xed  rate  subaccounts  as  subaccounts  with  interest  rates 
that  do  not  vary  with  changes  in  an  index  and  variable  rate 
subaccounts as those with interest rates that do vary from time 
to  time  with  changes  in  an  index.  The  interest  rates  for  ﬁ xed 
rate  loans  (other  than  credit  card  and  Line  of  Credit)  and  for 
the variable rate loans shown in the Addendum are discounted 
rates  available  only  if  you  establish  and  maintain  automatic 
payments  through  direct  deposit  or  some  other  method  of 
automatic  payment.  In  the  event  you  elect  not  to  establish 
automatic  payments  or  fail  to  make  an  automatic  payment  at 
any  time,  the  interest  rate  for  ﬁ xed  rate  loans  other  than  the 
Line of Credit and Credit Card (and the margin for variable rate 
loans)  will  increase  by  .50%  (0.001370%  DPR)  over  the  rate 
(and margin, if any) shown on the Addendum or Loan Advance 
Voucher. Any increase or decrease in the interest rate will affect 
the number of payments you will make under the Plan. BECU 
reserves the right to increase your payment amount in the event 
of  an  increase  in  your  interest  rate  with  a  term  based  on  the 
approximate  repayment  schedule  disclosed  in  the  Advance 
Voucher. 

f. Variable Rate Subaccounts. 

1)  Loans  other  than  Share  and  Certiﬁ cate  of  Deposit 
Secured. The daily periodic rate and corresponding annual 
percentage rate for variable rate loans are based upon an index 
which is the monthly average yield on United States Treasury 
securities adjusted to a constant maturity of six months, as 
published by the Federal Reserve Board in a weekly Federal 
Reserve Statistical Release, and rounded to the nearest one 
eighth of one percentage point (0.125%). The BECU Board of 
Directors may, at its discretion, set a lower rate. If the index 
is no longer available, BECU will choose a new index that is 
based  upon  comparable  information.  BECU  adds  a  margin 
(speciﬁ ed  for  the  type  of  loan  set  forth  in  the  Addendum) 
to the index. The total of the index, plus the margin amount 
we add is the annual percentage rate. The annual percentage 
rate  is  divided  by  365  to  produce  the  daily  Periodic  Rate. 
The  annual  percentage  rate  will  be  adjusted  semi-annually 
on July 1 and January 1 each year based on the index value 

9

for  the  preceding  May  and  November,  respectively.  Any 
increase or decrease in the annual percentage rate will affect 
the number of scheduled payments you will make under the 
Plan. However, if the amount of the payment is not enough 
to  pay  at  least  the  accrued  ﬁ nance  charges  and  voluntary 
payment protection costs, if applicable, we will increase your 
payment to an amount sufﬁ cient to pay off the balance under 
the original payment schedule. 

2)  Share  Secured  Loans.  The  Periodic  Rate  and 
corresponding annual percentage rate on your share secured 
subaccount  are  variable.  The  rate  is  2.00%  (“Margin’) 
above  the  dividend  rate  on  your  BECU  shares  declared  by 
the  BECU  Board  of  Directors  for  your  speciﬁ cally  pledged 
share  account.  The  total  of  the  dividend  rate,  plus  the 
amount  BECU  adds,  is  the  annual  percentage  rate.  The 
annual percentage rate is divided by 365 to produce the daily 
periodic  rate.  The  annual  percentage  rate  will  be  adjusted 
effective as of the effective date of any change in the dividend 
rate for your speciﬁ cally pledged share account or, at BECU’s 
sole  discretion,  as  of    the  1st  day  of  the  month  following 
such dividend rate change. Any increase or decrease in the 
annual percentage rate will affect the number of scheduled 
payments.

3) Fixed Rate Loans. The Periodic Rate and corresponding 
annual  percentage  rate  for  ﬁ xed-rate  subaccounts  are 
determined by the type of subaccount listed in the ﬁ xed-rate 
subaccount category set forth on the Addendum and whether 
or not you establish and maintain automatic payments.

4)  Certiﬁ cate  of  Deposit  Secured  Subaccounts.  The 
Periodic Rate and corresponding annual percentage rate for 
a  loan  under  your  Plan  secured  by  a  Certiﬁ cate  of  Deposit 
(“CD”) is a ﬁ xed rate of 2.00% (“Margin”) above the interest 
rate on the CD securing the account. The annual percentage 
rate is divided by 365 to produce the Daily Periodic Rate. You 
agree to pay the entire outstanding balance of this CD loan 
no later than the maturity date or early withdrawal of the CD. 
Any partial withdrawal of interest on the CD may be applied 
to pay down the CD subaccount. The CD securing this loan 
under your Plan is part of the collateral in which you have 
granted  BECU  a  security  interest  pursuant  to  the  Security 
Agreement set forth in Section A.8. 

10. Default. You will be in default under this Agreement if any of the 
following happens on any subaccount: 

a. you do not make a payment as required by this Agreement on 
or before the payment due date; 
b. you exceed your credit limit without our permission; 
c.  you  become  subject  to  bankruptcy,  incompetency  or 
insolvency proceedings or you die; 
d. any time BECU reasonably determines that the value of any 
security  has  substantially  declined  or  we  reasonably  deem 
ourselves insecure; 
e.  you  make  any  untrue  statements  or  omissions  or  provide 

10

false  signatures  on  any  application  or  ﬁ nancial  statement 
furnished  to  BECU  or  fail  to  provide  us  ﬁ nancial  information 
we request; 
f. your payment item is returned unsatisﬁ ed by your ﬁ nancial 
institution for any reason; 
g. any credit card check is returned unpaid by us; 
h. if we believe (in our sole discretion) that there has been an 
adverse change in your ﬁ nancial condition; 
i. you violate or fail to comply with any term of this Agreement, 
of any security agreement securing your loans from BECU or 
accounts  at  BECU,  but  excluding  real  property);  of  any  other 
agreement you have with BECU; 
j. someone tries to levy, execute upon, or attach or seize any 
property securing this Agreement (including any share or other 
accounts at BECU, but excluding real property); 
k. you no longer qualify for BECU membership; 
l. any necessary title release from a third party is not provided 
to  BECU  and/or  BECU  does  not  obtain  a  Certiﬁ cate  of  Title 
showing BECU as the sole lienholder within 30 days of the loan 
disbursal; 
m.  you  fail  to  obtain  and/or  maintain  the  property  insurance 
required pursuant to Section A.8 of this Agreement.

In the event you redeem any collateral in which you have granted us a 
security interest pursuant to Section A.8 following an event of default 
under  this  Agreement,  but  prior  to  our  disposition  of  the  collateral 
under  the  Uniform  Commercial  Code,  and  you  thereafter  request 
and we agree to reinstate this obligation, BECU reserves the right to 
increase the ANNUAL PERCENTAGE RATE on any credit advance to 
interest  at  the  Default/Penalty  Rate  as  disclosed  in  the  Addendum, 
or  the  highest  rate  allowed  by  law.  The  daily  periodic  rate  in  that 
circumstance shall be the annual percentage rate divided by 365. 

Occurrence of Default. Upon the occurrence of any event of default 
under  this  Agreement,  BECU  may  charge  interest  at  the  Default/
Penalty Rate, or the highest rate allowed by law, on all balances under 
the  Plan  following  default  and/or  we  have  the  right  to  terminate  or 
suspend your credit privileges under this Agreement, to change the 
terms  of  your  Account  and  this  Agreement,  may  demand  that  you 
immediately pay the entire unpaid balance of all your loans under your 
Plan,  increase  the  minimum  payments,  and/or  may  apply  any  loan 
subaccount payment to any outstanding subaccount balance under 
the Plan. The daily periodic rate, if the rate is increased following a 
default,  shall  be  the  annual  percentage  rate  divided  by  365.  BECU 
may start a collection action in the county in which BECU is located 
or where you reside if you live outside of Washington. Default on any 
loan, account or other obligation that you have with us, including 
loans which are not part of the Plan, will constitute default under 
this Agreement. 

Disposal  Upon  Default.  You  may  keep  and  use  any  collateral  that 
secures your obligations to BECU under this Agreement so long as 
you  are  not  in  default  under  this  Agreement.  If  you  are  in  default, 
BECU will have all of the rights of a secured party under the Uniform 
Commercial  Code,  in  addition  to  any  other  rights  BECU  may  have. 
You  will  assemble  the  collateral  and  make  it  available  to  BECU,  if 

11

 
BECU requests you to do so. BECU may take the property peaceably, 
and sell it. BECU will apply the “net proceeds” of the sale to reduce 
the amount you owe. “Net proceeds” means the sale price less the 
expenses of repossessing, selling, attorneys’ fees, and other lawful 
expenses. If you are entitled to any notice by law, you agree that 10 
days is reasonable time to give you notice of any such sale. Notice 
will be sent to your last address appearing on BECU records. 

11. Fees and Charges 

a.  Closing  Costs  and  Final  Payment.  You  agree  to  pay  all 
the  other  fees,  costs  and  charges  related  to  this  Plan  as  set 
forth on the Loan Advance Voucher at the time of each credit 
advance,  including  any  applicable  fees  and  charges  such  as 
ﬁ ling and recording fees, costs incurred in verifying your credit 
eligibility, any reconveyance or certiﬁ cate of title processing fee 
for preparing documents in connection with or the release of 
security, and any other out-of-pocket expenses. You also agree 
to pay all release, recording, transfer and reconveyance fees or 
costs incurred in connection with the release of collateral when 
your BECU loan is paid in full.

b.  Late  Charges.  If  your  payment  is  ten  (10)  or  more  days 
late, you will be charged a late charge in the amount of 5% of 
the entire scheduled payment amount or $25.00, whichever is 
greater. 

c. Attorneys’ Fees and Collection Cost. You agree to pay BECU’s 
internal and external costs, collection and other expenses such 
as repossession fees, expert witnesses, debt collectors, court 
costs,  and  reasonable  attorneys’  fees  and  legal  expenses 
whether  or  not  there  is  a  lawsuit,  including  attorneys’  fees  in 
any arbitration or mediation, on appeal, in any bankruptcy (or 
state receivership or other insolvency proceeding) and in any 
forfeiture or other proceeding. All of these costs and expenses 
may be added to your present debt and a ﬁ nance charge may 
be imposed on them at the highest rate applied to any of your 
credit advances. The security provisions in Section A.8 of this 
Agreement also secure payment of all these amounts. 

d. Returned Check Charge. If any check or other instrument 
given as payment on your Plan is uncollectible or is dishonored 
for any reason, we will charge you a returned check charge of 
$25.00. Unless otherwise required by law, we do not have to 
attempt to collect any check more than once. 

e. Failed Automatic Payment Charge. If your payment is late 
and you have elected to pay your payment by automatic transfer 
and  the  funds  are  not  available  in  your  BECU  share  account 
on  the  authorized  transfer  date,  we  will  charge  you  a  Failed 
Automatic Payment Charge of $25.00. 

f.  Payment  Modiﬁ cation  Fee.  Once  BECU  has  scheduled  the 
required minimum payment and due date for any subaccount 
established, you agree to pay $25.00 at any time you request 
to change the payment frequency or the payment due date for 
that  subaccount.  By  adjusting  your  payment  frequency,  you 

12

understand  and  acknowledge  that:  (1)  there  will  be  a  longer 
or shorter period of time between payment dates which could 
affect the amount of interest due; (2) there will be an increase or 
decrease in your payment amount; and (3) the period of time it 
will take for you to repay the subaccount could be extended. 

If any fee or charge, or any portion of any fee or charge, including 
but not limited to a ﬁ nance charge or method of computing a ﬁ nance 
charge, would but for this sentence be unlawful, the language of this 
Agreement shall be automatically reformed to eliminate any excessive 
or  unlawful  portion  of  such  fee.  In  no  event  shall  the  fees  charged 
under this agreement exceed the maximum allowed under applicable 
state or federal law. In its sole discretion, BECU may charge and collect 
a lesser amount than that speciﬁ ed in this Agreement, or forego any 
other rights under this Agreement. Any waiver of any provision of this 
Agreement shall not be deemed a waiver of such rights in the future. 

12. Voluntary Payment Protection. We may offer Voluntary Payment 
Protection to you. Voluntary Payment Protection is not necessary to 
obtain  credit.  If  you  purchase  Voluntary  Payment  Protection  from 
us,  you  authorize  us  to  add  the  fees  monthly  to  your  loan  balance 
and charge you interest on the entire balance. At our option we will 
change your payment or the period of time necessary to repay the 
loan balance. The rate used to determine the fees may change in the 
future. If the rate changes, we will provide any notices required by 
applicable law.  

13.  Amendments 

a.  Plan  Termination.  You  or  any  co-applicant  may  terminate 
your  Plan  in  writing  at  any  time.  BECU  may  also  terminate 
your entire Plan or any part of your Plan at any time. All other 
provisions of this Agreement shall otherwise remain in full force 
and effect until you pay all sums due us. You understand that 
terminating your Plan will not relieve you of your obligations on 
any outstanding loan balances at the time of termination. 

b.  Plan  Changes.  You  agree  that  BECU  may,  at  any  time, 
change any part of this Agreement, add new provisions, delete 
existing ones, or change any other terms and conditions of this 
agreement  relating  to  your  Plan  or  subaccount,  provided  we 
have given you notice in advance of the change, if required by 
law. Any change in terms, including increasing the daily periodic 
rate of ﬁ nance charges or increasing or adding fees or charges, 
will apply to all future credit advances under the Plan as of the 
effective date of the change, and at our discretion and subject to 
any applicable laws, will also apply to any outstanding balance on 
any loan(s) under the Plan as of the effective date of the change. 
We may also choose to make changes to the annual percentage 
rate or fees and charges effective as of the ﬁ rst day of your next 
billing  period  beginning  after  the  indicated  effective  date.  An 
increase  in  the  daily  periodic  rate  and  the  annual  percentage 
rate  for  a  variable  rate  loan,  or  for  the  failure  to  maintain  the 
automatic payment transfer feature, or other changes speciﬁ ed 
in  this  Agreement  following  default,  are  contractually  agreed 
and are not considered a change in terms for purposes of this 

13

paragraph. Any notice of change in terms required by law will 
be sent to the last address appearing on the records of BECU, 
unless  you  notify  us  of  the  change  in  your  address  within  a 
reasonable time prior to the notice being sent. 

14.  Enforcement.  BECU  can  delay  enforcing  any  right  under  this 
Agreement without losing that right or any other right. In the event 
you die, we can collect any amounts outstanding under your Plan as 
immediately owed against your estate or against anyone who obtained 
an advance under your Plan. If any provisions of this Agreement or 
related agreement are deemed unenforceable or invalid, the remaining 
provisions will remain in full force and effect. 

15. Assignment. We have the right to assign and transfer our rights 
under this Agreement and any amounts you owe to us. The term “us” 
shall be deemed to include each and every immediate and successive 
assignee. You do not have the right to assign or transfer any of your 
rights, duties or obligations under this Agreement. 

16. Notices. All notices and statements will be sent to the last address 
appearing on BECU records. You agree to advise us promptly if you 
change  your  mailing  address.  We  can  accept  address  corrections 
received from the U.S. Postal Service. 

17.  Credit  Information/Financial  Statements.  You  authorize  us  to 
release  information  to  others  (e.g.,  credit  bureaus,  merchants,  and 
other ﬁ nancial institutions) regarding the status and history of your 
Plan. You agree to provide us upon request at any time with a current 
ﬁ nancial statement, updated credit information, or any appraisal on 
the collateral requested in our sole discretion. If you fail to provide an 
acceptable appraisal within a reasonable period of time, we may obtain 
it ourselves and add its cost to your subaccount. You agree we may 
obtain or have obtained credit reports, employment or investigative 
inquiries on you at any time, at our sole option and expense, for any 
reason,  including  but  not  limited  to  determining  whether  there  has 
been an adverse change in your ﬁ nancial condition. 

18.  Governing  Law.  This  Agreement  will  not  take  effect  until  it  is 
approved by us in the state of Washington. This Agreement shall be 
governed by the Federal laws and the laws of the state of Washington 
as they each apply. In accepting the terms of this contract, you agree 
that venue for any action brought by you or brought by us to enforce 
the terms of the agreement is properly located in King County, Seattle, 
Washington. 

19.  Acknowledgment  and  Agreement.  You  understand  and  agree 
to  the  terms  of  this  Agreement.  No  consideration  has  passed  or 
will  pass  from  the  borrower  to  the  endorser  for  endorsement.  You 
acknowledge  that  you  have  read  this  Agreement  and  the  Master 
Credit Application and the Fair Credit Billing Notice provided to you. 
You also understand that all Loan Advance Vouchers are part of this 
Agreement with BECU, and that by accepting credit advances in the 
future you will be agreeing to the terms set forth on the Loan Advance 
Voucher which is integrated as part of this Agreement. 

14

20.  Captions  and  Catch  lines  for  Reference  Only.  Captions  and 
catch lines are intended solely as aids to convenient reference and no 
inference as to intent with respect to this Agreement may be drawn 
from them. 

B.  ADDITIONAL  TERMS  APPLICABLE  TO  PERSONAL  LINES  OF 
CREDIT 
This section contains additional terms and conditions pertaining to 
the personal line of credit subaccount (“Line of Credit”). The terms 
and conditions in this section are in addition to and modify the terms 
and conditions of the Plan with respect to Lines of Credit. All other 
features, terms and conditions of the Plan, including but not limited 
to the security interest granted under Section A.8 of this Agreement, 
are  not  modiﬁ ed  by  this  section  and  will  also  govern  your  Line  of 
Credit. 

1.    Joint  Accounts.  You  understand  that  any  joint  owner  on  your 
checking  account  or  your  deposit  account  with  checking  account 
features, or any person authorized to use an access device for this 
subaccount  (e.g.,  ATM/Debit  Card,  Telephone  Banking,  or  Online 
Banking) may access your Line of Credit and you and they agree to 
be jointly and severally liable for such transactions. 

2. Promise to Pay 

a. Payment Methods. Your required periodic payment will be 
made  by  automatic  transfer  from  your  savings  or  checking 
account at BECU. 
b.  Minimum  Payment.  The  Line  of  Credit  payment  amount 
will  be  the  greater  of  $25  or  2%  of  the  outstanding  balance 
on  your  subaccount  at  the  end  of  the  billing  cycle  statement 
period which begins on the second day of the month and ends 
on  the  ﬁ rst  day  of  the  following  month  (“Ending  Balance”). 
When the credit limit is suspended or terminated, the payment 
amount will be calculated for the remaining balance at 2% of the 
outstanding balance. This payment will be ﬁ xed at that amount 
until the balance is paid in full. 

3. Subaccount Advances and Access 

a.  Limitations  on  Credit  Advances.  You  will  receive  a  Loan 
Advance  Voucher  showing  the  amount  of  the  credit  limit  on 
your  Line  of  Credit,  which  is  the  maximum  amount  you  may 
draw upon without getting our speciﬁ c approval for additional 
advances. You may access credit on your Line of Credit, repay 
any portion of the amount borrowed, and reborrow any portion 
up to your credit limit from time to time without limitation. 

b.  Overdraft  Access.  You  may  access  your  Line  of  Credit 
by  writing  drafts,  using  a  BECU’s  ATM  and  Debit  card  at  an 
ATM, and overdrawing your checking account or your deposit 
account with checking account features with us, as speciﬁ cally 
designated  by  you  for  overdraft  protection.  We  may,  at  our 
sole  discretion,  access  this  subaccount  on  your  behalf  if  you 
have  scheduled  automatic  payments  for  which  there  are  not 
sufﬁ cient  collected  funds  in  your  checking  account  or  your 
deposit account with checking account features. We will not do 
this if the advance to cover the scheduled payment would cause 

15

your credit limit to be exceeded. We will treat the overdraft as 
a  request  for  an  advance  on  your  Line  of  Credit  and  we  will 
allow such access subject to the terms of this Agreement. You 
understand that any owner on your checking account or your 
deposit  account  with  checking  account  features  may  obligate 
you  to  overdraft  advances.  Line  of  Credit  overdraft  funds 
transfers  will  be  made  in  $100.00  increments  (or  the  unused 
portion  of  the  available  credit  limit  if  less  than  $100.00)  and 
will  be  transferred  to  your  checking  account  or  your  deposit 
account  with  checking  account  features.  You  agree  not  to  let 
the overdrawn balance exceed your approved credit limit. If you 
fail  to  meet  any  conditions  of  your  checking  account  or  your 
deposit account with checking account features, we may cancel 
your  Line  of  Credit  immediately  without  notice.  In  any  event, 
you  hold  us  harmless  from  any  and  all  liability  which  might 
arise  if  the  transfer  does  not  occur.  Transfers  from  deposit 
accounts  will  be  governed  by  the  Membership  and  Account 
Agreement. Transfers from a Line of Credit will be governed by 
this Agreement.

c.  Suspension  of  Account.  Your  ability  to  draw  upon  the  Line  of 
Credit will be suspended immediately if (1) the  checking account or 
the  deposit  account  with  checking  account  features,  as  speciﬁ cally 
designated for overdraft protection by you, is closed for any reason; 
(2)  your  automatic  payment  transfer  to  your  Line  of  Credit  is 
cancelled for any reason; or (3) we determine that no Line of Credit 
advances have been made within ninety (90) days from the account 
establishment or within one (1) year from the last advance. You may 
request that your Line of Credit be reinstated, upon re-enrolling for 
automatic payment transfer or upon reopening a checking account or 
a deposit account with checking account features. 

4. Fees and Charges. BECU reserves the right to charge an Overdraft 
Transfer Fee when BECU pays a check, fee or other item posted to 
your checking account when there are not sufﬁ cient funds to cover 
them. The fee for each overdraft protection transfer is set forth on the 
Addendum made from your Line of Credit. 

C. ADDITIONAL TERMS APPLICABLE TO CREDIT CARDS 
This section contains additional terms and conditions pertaining to 
the credit card subaccount of your Plan (“Credit Card”). References 
to “Credit Card” below relate to the subaccount associated with the 
credit card and not only to transactions conducted through use of the 
physical credit card itself. The terms and conditions in this section 
are in addition to and modify the terms and conditions of the Plan. 
All  other  features,  terms  and  conditions  of  the  Plan,  including  but 
not  limited  to  the  security  interest  granted  under  paragraph  A.8  of 
this Agreement, are not modiﬁ ed by this section and will continue to 
govern your Credit Card subaccount. 

1.  Responsibility.  Any  person  or  entity  that  has  accepted,  signed, 
used, or authorized the use of a Credit Card under the Plan agrees to 
be and is bound by the terms of this Agreement. In this Agreement, 
the word “Cardholder” means the applicant and co-applicant(s) for 
the Plan associated with the Credit Card, and each authorized user 

16

 
 
of  the  Credit  Card  (“User”),  whether  named  in  an  application  as  a 
User, or otherwise. In this Part C of the Agreement, “you” means the 
Cardholder(s)  associated  with  a  particular  Credit  Card  subaccount. 
The  following  additional  deﬁ nitions  apply  in  this  Section  C  and  on 
your monthly statement. 

New  Balance:  The  sum  of  all  of  the  unpaid  Purchases,  Cash 
Advances,  ﬁ nance  charges,  late  payment  charges,  and  other 
charges outstanding on the closing date. 
Previous  Balance:  The  sum  of  all  unpaid  Purchases,  Cash 
Advances,  ﬁ nance  charges,  late  payment  charges,  and  other 
charges  at  the  beginning  of  the  billing  cycle  (it  is  the  same 
amount that was shown as “New Balance” on the closing date 
on the statement for the preceding billing cycle). 
Purchases: Transactions involving advances other than Balance 
Transfers, Convenience Checks and Cash Advances. 

2.  Liability.  You  will  be  liable  for  all  credit  obtained  under  your 
Credit Card by any Cardholder. If there is more than one Cardholder, 
then each will be liable, jointly and severally, for all credit obtained 
through authorized use of the Credit Card. If two or more persons are 
responsible to pay any outstanding balance, we may refuse to release 
any of them from liability until all of the unexpired Credit Cards issued 
pursuant to the Plan have been returned to us and/or the balance is 
paid in full. 

3.  Internet  Transactions.  In  order  to  make  transactions  over  the 
internet, merchants may request your Veriﬁ ed by Visa password to 
complete the transaction. If a password is not provided, the merchant 
may deny the transaction. If the password is incorrect, we may deny 
the transaction. 

4. Purchases and Cash Advances. Any Cardholder can use the Credit 
Card  for  Purchases  and  Cash  Advances.  You  will  owe  us  for  these 
amounts, plus ﬁ nance charges and other charges. You may not use 
the  Credit  Card  for  any  illegal  or  unlawful  transaction  and  we  may 
decline to authorize any transaction that we believe poses an undue 
risk of illegality or unlawfulness. 

5. Convenience Checks and Balance Transfers.

a. Convenience Checks. We may supply you with personalized 
cash  advances  as  a  way  to  use  your  Account  (“Convenience 
Checks” or “Checks”).  You may use a Check to pay for goods 
or services, to transfer balances to your account, or for other 
uses  we  allow,  subject  to  the  following  conditions.  Only  the 
person whose name is printed on a Check may sign it. We will 
not certify a Check. We are entitled to return a Check if there 
is  not  enough  available  credit  on  your  Credit  Card  to  pay  it, 
if you are in default under this Agreement, if your Credit Card 
or  Checks  have  been  reported  lost  or  stolen,  or  if  the  Check 
is postdated. Any Check that we pay will be treated as a Cash 
Advance. You may not use these  Checks to transfer balances to 
this account from other accounts with us. BECU shall not have 
any liability for any Convenience Check(s) returned. 

b.  Balance  Transfers.  You  may  transfer  balances  from  other 
accounts  or  loans  with  other  credit  card  issuers  or  other 

17

lenders  to  this  Account,  or  other  balance  transfers  we  allow.  
But you may not transfer balances to this Account from other 
accounts with us.  If a portion of a requested balance transfer 
will exceed your available credit line, we may process a partial 
balance transfer up to your available credit limit.

6. Daily Periodic Rate (DPR) and Annual Percentage Rate (APR). 
The  DPR  and  corresponding  APR  used  to  calculate  the  FINANCE 
CHARGE are variable.  The APR is based on the value of an index. 
The index is the highest Prime Rate as published in The Wall Street 
Journal in effect on the last day of each calendar quarter. To determine 
the Annual Percentage Rate that will apply to your credit card, we add 
a margin to the value of the index. The current range of APRs that can 
apply is disclosed in the Credit and Security Agreement Addendum.  
The  margin  that  applies  to  your  account,  the  current  APR,  and  the 
minimum  and  maximum  APR  applicable  to  your  account,  will  be 
stated on a document provided to you when you open your account.  
Your APR can change quarterly on the ﬁ rst day of the second month 
following  the  end  of  a  calendar  quarter.  There  is  no  limit  on  the 
amount  by  which  your  rate  can  change  on  any  given  change  date 
other  than  the  maximum  and  minimum  APR  that  can  apply  at  any 
time to your account.  After you open a credit card, rate information 
will be provided in periodic statements that we send you.

7. Finance Charges 

a. Purchases. A ﬁ nance charge will be imposed on the portion 
of purchases included in the New Balance that remains unpaid 
by  the  payment  due  date  on  your  monthly  statement,  and  on 
purchases made during the following billing cycle.

b.  Cash  Advances.  A  ﬁ nance  charge  will  be  imposed  on 
Cash  Advances  (including  Convenience  Checks  and  Balance 
Transfers)  as  follows:  1.  On  each  Cash  Advance,  excluding 
Convenience  Checks  and  Balance  Transfers,  a  Cash  Advance 
Fee  (FINANCE  CHARGE)  of  2%  of  the  amount  of  the  Cash 
Advance, not to exceed $10.00. 
2.  On  all  Cash  Advances,  including  balance  transfers  and 
Convenience  Checks,  ﬁ nance  charges  as  described  in  section 
C.8.  below,  regardless  of  the  amount  of  the  Cash  Advance, 
apply from the date of the Cash Advance until paid in full. 

8. How to Determine Finance Charges: 

a. The types of FINANCE CHARGES that may be assessed on 
your  Account  are  monthly  periodic  rate  ﬁ nance  charges  and 
transaction  ﬁ nance  charges.  Your  total  FINANCE  CHARGES 
each billing cycle is the sum of each type of ﬁ nance charges. 

b.  Calculation  of  Finance  Charge.  All  ﬁ nance  charges  for 
Purchases and Cash Advances are added together to calculate 
the annual percentage rate for each billing cycle. 

Calculation  of  Finance  Charges  for  Cash  Advances.  A  Finance 
Charge  on  Cash  Advances  will  be  imposed  from  the  date  the  Cash 
Advance is posted to your account until paid in full. There is no period 
in which you can pay a Cash Advance in order to avoid incurring a 
Finance Charge. We calculate the Finance Charge by multiplying the 

18

 
Average Daily Balance by the number of days in the billing cycle and 
then multiplying by the Daily Periodic Rate. We calculate the Average 
Daily Balance, attributable to Cash Advances by adding the beginning 
balance of your account each day, add any new Cash Advances and 
new Cash Advance Fees and subtract any payments, credits posted 
to your Account and unpaid Finance Charges and other charges. Then 
we add up all the daily balances for the billing cycle and divide the 
total by the number of days in the billing cycle. 

Calculation of Finance Charges for Purchases. To avoid incurring 
Finance  Charges  on  the  balance  of  the  Purchases  reﬂ ected  on  the 
statement,  you  must  pay  the  entire  New  Balance  on  or  before  the 
Payment Due Date shown on your statement. If you do not pay the 
entire New Balance on or before the Payment Due Date, the unpaid 
portion of the New Balance will accrue interest beginning on the ﬁ rst 
day of the billing cycle in which the payment is due.  We calculate 
the Finance Charge by multiplying the Average Daily Balance by the 
number of days in the billing cycle and then multiplying by the Daily 
Periodic Rate. We calculate the Average Daily Balance of Purchases 
by  taking  the  beginning  balance  of  your  account  each  day  that  is 
attributable  to  Purchases,  add  any  new  Purchases  as  of  the  date 
those charges are posted to your Account and subtract any additional 
payments,  credits,  and  unpaid  Finance  Charges  and  other  charges 
(unless you have been notiﬁ ed in advance that Return Check Charges 
will  have  Finance  Charges  assessed).  Then  we  add  up  all  the  daily 
balances for the billing cycle and divide the total by the number of 
days in the billing cycle.  If you paid the entire New Balance shown 
on the previous monthly statement by the Payment Due Date shown 
on  that  statement,  the  portion  of  the  New  Balance  shown  on  the 
current  statement  that  is  paid  by  the  Payment  Due  Date  shown  on 
that  statement  will  be  excluded  from  the  calculation  of  the  balance 
each day. 

9. Other Fees and Charges 

a. A Copy Request Charge of $3.00 may be imposed for copies 
of  each  document  that  you  request  in  connection  with  this 
subaccount, other than those provided in response to a billing 
error notice under the Fair Credit Billing Act. 
b.  A  Late  Payment  Charge  of  $25.00  will  be  imposed  on 
minimum payments not paid by the payment due date. 
c. A Returned Check Charge of $25.00 will be charged if any 
check  or  other  instrument  given  as  payment  on  your  Credit 
Card  is  uncollectible  or  is  dishonored  for  any  reason.  Unless 
otherwise required by law, we do not have to attempt to collect 
any check more than once. 
d. A Card Replacement Fee of $5.00 may be assessed for each 
Credit Card lost, stolen or destroyed. 
e.  A  Card  Recovery  Fee  will  be  charged  and  added  to  your 
balance if: 1) you use your Credit Card after the Credit Card has 
been cancelled, and 2) we must pay a recovery fee to a third 
party who obtains the Credit Card for us. 
f. A Collection Charge will be charged if we must telephone you, 
write  to  you,  or  make  a  personal  visit  due  to  any  default  on 
your part. 
g.  A  Stop  Payment  Fee  charge  of  $5.00  may  be  imposed  for 
each stop payment on a Convenience Check. 

19

h. A Failed Automatic Payment Charge of $25.00 will be charged 
if you have elected to make your payment by automatic transfer 
and the funds are not available in your BECU share account on 
the scheduled transfer date.

10.  Change  in  Terms  (including  Finance  Charges).  Subject 
to  applicable  law,  we  may  change  or  terminate  any  term  of  this 
Agreement or add new terms at any time, including without limitation 
adding or increasing fees, increasing your minimum Periodic Payment 
and  increasing  the  rate  or  amount  of  Finance  Charge,  or  changing 
the method of computing the balance upon which Finance Charges 
are  assessed.  Prior  notice  will  be  provided  to  you  when  required 
by  applicable  law.  Changes  may  apply  both  new  and  outstanding 
balances. 

11. Security Interest. In addition to the security interest granted under 
Section A.8 of this Agreement and included in the Plan, one or more 
of  the  following  is  applicable  as  security  for  amounts  outstanding 
from time to time in connection with the Credit Card: 

a.  Deposit  Account.  If  you  are  issued  a  secured  Credit  Card, 
you have signed or will be required to sign a separate security 
agreement pledging a portion of your shares and/or deposits in 
BECU to secure your Credit Card. The amount of the security 
is  the  amount  of  your  credit  limit  and  you  may  not  have  any 
access to or control of that amount. We also have a statutory 
lien against all of your shares and/or deposits at BECU. 

b. Goods Purchased. You hereby grant us a security interest 
in  each  item  purchased  with  advances  obtained  under  this 
Agreement. This security interest will remain in full force and 
effect  as  long  as  there  is  an  outstanding  balance  on  the  item 
purchased. If we have the right to demand full payment of your 
new balance, we may also take possession of this property (you 
promise  to  give  it  to  us  if  we  ask)  and  sell  it  to  satisfy  your 
debts  and  obligations.  Any  outstanding  debt  will  be  allocated 
upon the ﬁ rst-bought, ﬁ rst paid rule. You agree that 10 days is 
reasonable time to give you notice of any such sale. 

12. The Minimum Periodic Payment Required 

a.  Payments.  Payments  received  at  Card  Services,  P.O.  Box 
84707, Seattle WA 98124-6007 before 5 PM Paciﬁ c Time on any 
business day will be credited to your Account as of that date; 
payments received on or after 5 PM PT, on a weekend or federal 
holiday will be posted to your Account as of the next business 
day. Crediting to your Account may be delayed up to ﬁ ve days 
if payment is received at any other address or not accompanied 
by the remittance portion of your Account statement. 

b. New Balance. If you elect not to pay your new balance in full, 
you must make a payment according to the following schedule 
on or before the due date shown on your statement. If the new 
balance  is  less  than  $25  your  minimum  payment  will  be  the 
full  balance;  if  your  balance  is  $25  to  $1,000  your  minimum 
payment will be $25; if your balance is more than $1,000 your 
minimum payment will be 2½% of your new balance rounded 
down  to  the  nearest  whole  dollar.  A  credit  posting  from  a 

20

merchant  or  reversal  of  fees  do  not  constitute  a  minimum 
payment.  The  minimum  payment  will  be  allocated  at  BECU’s 
discretion to pay off lower rate balances, such as promotional 
offers,  before  higher  rate  balances,  such  as  cash  advances 
or  purchases.    Payments  in  excess  of  the  minimum  payment 
will  be  allocated  to  pay  off  higher  rate  balances  ﬁ rst.      From 
time to time, we may allow you to skip your Minimum Periodic 
Payment  due.  If  you  choose  to  skip  that  payment,  FINANCE 
CHARGES, and voluntary payment protection costs, if any, will 
continue to accrue in accordance with this Agreement.

c. Past Due and Overlimit Amounts. In addition to the above, the 
minimum payment will also include the greater of any amount 
past due or any amount by which the new balance exceeds the 
approved  credit  limit  for  the  account.  If  your  account  is  past 
due, and/or overlimit, that amount of the minimum payment is 
immediately due. 

d. Payment in Full. The payment of the new balance in full will 
not  reduce  the  minimum  payment  for  the  next  billing  cycle  if 
there are new purchases or cash transactions. 

13.  Lost,  Stolen,  or  Unauthorized  Use  of  Your  Card.  You  agree 
to  notify  us  immediately,  orally  or  in  writing,  of  the  loss,  theft,  or 
unauthorized  use  of  your  Credit  Card.  We  may  investigate  any 
cases  of  unauthorized  use  of  your  Credit  Card.  We  may  terminate 
or limit access to your Credit Card if you have notiﬁ ed us or we have 
determined  that  your  Credit  Card  or  convenience  checks  may  have 
been lost or stolen, or that there may be unauthorized access to your 
Credit  Card.  Unless  you  have  been  negligent  or  have  engaged  in 
fraud, you will not be liable for any unauthorized transactions using 
your  lost  or  stolen  Credit  Card.  If  you  are  liable  for  unauthorized 
transactions, your liability will not exceed $50. You will not be liable 
for unauthorized transactions that occur after you notify us at: 

BECU, P.O. Box 97050,  Seattle, WA 98124-9750
Telephone: (206) 439-5700 or outside Seattle at 1-800-233-2328
Hours: 7:00 a.m. - 7:00 p.m. PT Monday-Friday; 9:00 a.m. - 1:00 
p.m. PT Saturday
After hours only for use of reporting the loss, theft, or unauthorized 
use of your Credit Card: Call 1-800-449-7728 .)

14. Additional Provisions 
a.  Ownership  of  Credit  Cards.  Any  Credit  Card,  other  credit 
instrument  or  device  which  we  supply  to  you  is  our  property  and 
must be returned to us or our Agent, immediately upon demand. If 
we ask, you will destroy the Credit Card by cutting it in half and will 
surrender it to us or our Agent, mail it to us, or take it to a location 
we designate. 

b. Honoring of Credit Card. We will not be responsible for the failure 
or  refusal  of  anyone  to  honor  the  Credit  Card  or  any  other  credit 
instrument or device we supply to you. 

21

c. Transfer of Credit Card. You cannot transfer your Credit Card to 
any other person, although you will be liable for any use by anyone 
else that has been authorized by you or another Cardholder. 

d. Refunds. If a seller agrees to give you a refund or adjustment, you 
will accept a credit slip for your Credit Card in lieu of a cash refund. 

e.  Transactions.  For  statement  veriﬁ cation,  you  will  retain  your 
copy  of  each  slip  (ticket/draft)  resulting  from  each  Purchase,  Cash 
Advance, or other transaction on your Credit Card. We will provide 
you  with  photographic  or  other  documentary  evidence  of  each 
transaction  upon  your  reasonable  request  or  upon  proper  written 
notice of a billing error. (See section C.9.b for cost information.) 

f.  Foreign  Transactions  and  Foreign  Exchange.  If  you  use  your 
card  for  international  transactions,  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  rate  may  vary  from  the  rate  Visa 
itself  receives,  or  the  government-mandated  rate  in  effect  for  the 
applicable  central  processing  date.  In  addition,  a  1  percent  (1%) 
Foreign Transaction Fee is applicable to all International Transactions, 
regardless  of  whether  or  not  currency  conversion  is  involved  and 
applies  to  all  international  purchases,  credit  voucher,  and  cash 
disbursement  original  and  reversal  transactions.  The  currency 
conversion  rate  on  the  day  before  the  transaction  processing  date 
may differ from the rate in effect at the time of the transaction or on 
the date the transaction is posted on your subaccount. You agree to 
accept the converted amount in U.S. dollars. 

g. Phone Inquiries. Inquiries regarding your Credit Card (you may 
not  inquire  about  someone  else’s  subaccount)  may  be  made  by 
calling BECU at 206-439-5700 or, outside Seattle at 1-800-233-2328 
or by writing us at the address provided above. 

h. Our Address. Please address all other correspondence, letters and 
notices (excluding payments) with respect to Credit Cards to us at: 
Customer Service P.O. Box 31112 Tampa Florida 336313312. 

i. Inactivity. BECU reserves the right to terminate the credit if there 
are no transactions in one year. 

j.  Non-Activation.  If  Cardholder  fails  to  activate  Account  within  30 
calendar days of Account establishment, BECU reserves the right to 
cancel Account. 

k. Closing your Account. You can cancel or close your Account by 
either calling us at 206-439-5700 or, outside Seattle at 1-800-233-
2328 or writing us at the address provided above. If you cancel the 
Account, you must immediately pay everything you owe us, including 
any  amounts  owed  but  not  yet  billed  to  you.  If  you  do  not  pay  us 
immediately,  outstanding  balances  will  continue  to  accrue  ﬁ nance 
and other charges and be subject to the terms and conditions of this 
Agreement. You also agree to return to us or destroy your Card(s) and 
any unused Convenience Checks. You agree that you will not attempt 

22

to  make  a  Purchase  or  Cash  Advance  after  you  have  been  notiﬁ ed 
of  your  or  our  termination  or  suspension  of  your  credit  privileges.  
You further understand and agree that it is your sole responsibility to 
terminate your authorization of all reoccurring transactions you may 
have scheduled with merchants or other third parties.

II. YOUR BILLING RIGHTS 
This notice contains important information about your rights and our 
responsibilities under the Fair Credit Billing Act. 

1.  Notify  Us  in  Case  of  Errors  or  Questions  About  Your  Billing 
Statement.  If  you  think  your  bill  is  wrong  or  if  you  need  more 
information about a transaction on your bill, write us on a separate 
sheet for Credit Cards at Customer Service, P.O. Box 31112, Tampa FL 
33631-3112. For any other subaccount, write us at Risk Management 
Representative-Account Dispute, P.O. Box 97050, Seattle WA 98124-
9750. Write to us as soon as possible. We must hear from you no 
later than 60 days after we send you the ﬁ rst bill 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:  a)Your  name  and 
account number; b) The dollar amount of the suspected error; and 
c) 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 credit card bill automatically 
from your savings or checking 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. 

2.  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 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  bill  you 
for the amount you question, including ﬁ nance 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 bill that are not in question. 

If we ﬁ nd that we made a mistake on your bill, you will not have to pay 
any ﬁ nance charges related to any questioned amount. If we didn’t 
make a mistake, you may have to pay ﬁ nance 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 

23

 
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 bill. 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 ﬁ nally is. 

If  we  don’t  follow  these  rules,  we  can’t  collect  the  ﬁ rst  $50  of  the 
questioned amount, even if your bill was correct. 

3. 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: 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. 

III. BECU VISA REWARDS PROGRAM 
OPTION
This section contains Terms and Conditions pertaining to the BECU 
Rewards  Program  that  you  may  elect  to  add  to  your  credit  card 
subaccount  at  BECU  (”Credit  Card”).  By  enrolling  in  the  BECU 
Rewards  Program,  you  agree  to  accept  the  terms  and  conditions 
that  are  in  addition  to  and  modify  the  terms  and  conditions  of  the 
Credit and Security Agreement (“Agreement”) and the Application & 
Security Agreement for Secured Credit Card (“Security Agreement”) 
if you currently have a Secured Credit Card, and the BECU Rewards 
Program  Disclosure  and  Statement  which  otherwise  governs  your 
Credit Card. The terms and conditions that govern the BECU Rewards 
Program  are  contained  in  the  BECU  Rewards  Program  Disclosure 
that will be sent to you. 

1.  Enrolling  in  the  BECU  Rewards  Program.  The  BECU  Rewards 
Program  (“Rewards  Program”)  is  restricted  to  individuals  and 
BECU  VISA  Cardholders  only.    By  orally  instructing  us  to  enroll  in 
this  Rewards  Program,  you  agree  to  waive  any  express  or  implied 
provisions of the original Agreement requiring that amendments or 
modiﬁ cations to the Agreement be agreed in writing. The terms of the 
Rewards  Program  becomes  effective  immediately  upon  our  receipt 
and acknowledgment of your instruction to enroll in the Program and 
will  apply  only  those  purchases  of  goods  and  services  made  with 
your Credit Card after that effective date. 

For each dollar of Net Purchases charged to your Credit Card, you will 
be awarded one point. Net Purchases means, for any period, the total 
of all authorized charges posted to your Credit Card for the purchase 
of goods or services, less any credits for charge reversals or other 
refunds, but excluding all Cash Advances, other Cash Transactions, 
all Fees and Incidental Charges and charges to your Credit Card using 
BECU Visa Convenience Checks, and credit card balance transfers to 
your Credit Card. Points valid for 5 years. 

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To participate in the BECU Rewards Program, you agree to pay us an 
annual participation fee of $25.00, whether or not you ever earn any 
points. This annual participation fee will be immediately due and may 
be charged to your Credit Card upon our receipt and acknowledgment 
of your instruction and will be fully earned upon payment. You may 
cancel your Rewards Program participation and obtain a refund by 
providing  the  Credit  Union  with  written  notice  within  14  business 
days  of  your  request  to  enroll.  Once  you  use  your  Account  in  any 
manner, you waive any right to a refund of the participation fee. Other 
signiﬁ cant terms apply. Program terms may change. 

IV. LOAN PAYMENT PROTECTION 
CONTRACT 
This contract contains the conditions upon which we will cancel all or 
a portion of the protected balance and/or cancel or postpone interest 
and/or the daily payment. You, meaning a borrower enrolled in the 
program, should read this contract carefully and keep it in your ﬁ les. 
This contract explains the terms that both you and we agree to follow 
for the program. It replaces any and all program contracts previously 
issued with respect to the loan. 

1. DEFINITIONS 
ACCIDENTAL  INJURY  means  an  occurrence  that  is  unforeseen, 
unexpected, involuntary, and due to an external cause. 
ADMINISTRATOR  means  CUMIS  Insurance  Society,  Inc.,  5910 
Mineral Point Road, Madison, Wisconsin 53705, one of its afﬁ liates, 
or a contracted third party. 
ADVANCE means each extension of credit we provide to you under 
a loan. 
BORROWER means a person who is obligated to repay the advance 
to  us,  either  principally  or  jointly  and  severally.  It  does  not  include 
guarantors. 
DAILY PAYMENT means the protected periodic payment converted to 
an equivalent amount per day. 
EFFECTIVE DATE OF PROTECTION means the later of the date you 
enrolled  in  the  program  option,  the  date  your  protection  under  the 
program is reinstated, or the date of the advance. 
FULL-TIME EMPLOYMENT or EMPLOYED FULL-TIME means actively 
working for income 25 hours or more per week. 
LENDING AGREEMENT means an open-end line of credit or an open-
end credit plan. 
LOAN means an open-end line of credit or a credit feature/ subaccount 
under an open-end credit plan. 
NON-PROTECTED  ADVANCE  means  any  advance  not  protected 
according to the Non-Protected Events section of this contract. 
PROTECTED  BALANCE  means  the  pay-off  amount  owed  under  the 
loan  on  the  ﬁ rst  day  of  a  protected  event  less  any  non-protected 
advances. 
PROTECTED  PERIODIC  PAYMENT  means  the  minimum  payment 
amount,  including  principal,  interest,  and  the  program  fee,  due  on 
the  protected  balance.  It  does  not  include  any  scheduled  balloon 
payment,  escrow  amounts,  other  fee  or  insurance  amounts,  the 
amount of any minimum payment that represents past due payments, 
or  amounts  that  exceed  any  credit  limit  for  the  loan.  For  balloon 
loans, the protected periodic payment will be determined using the 

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minimum payment amount due for the period immediately preceding 
the  scheduled  balloon  payment.  For  variable  rate  and/or  variable 
payment loans, the protected periodic payment will remain equal to 
the  protected  periodic  payment  as  of  the  ﬁ rst  day  of  the  protected 
event. 
WE,  US,  OUR  means  the  credit  union  named  on  the  loan  and  this 
contract. 

2. GENERAL PROVISIONS 
PROOF  OF  A  PROTECTED  EVENT.  You  must  notify  us  or  our 
administrator  when  a  protected  event  occurs.  Claim  forms  and 
written evidence may be required periodically to show that conditions 
of the program are satisﬁ ed. If you do not report a claim or provide 
initial or continued proof within one year of the date requested, we 
will not accept (or continue to accept) your claim. 

PAST EVENTS. The program does not protect you from events that 
occurred before your enrollment in the program. If you enroll in the 
program as a single borrower and add a joint borrower at a later date, 
the joint borrower will be considered to have enrolled in the program 
on the date of becoming a joint borrower. 

TAX IMPLICATIONS. You may be subject to federal, state, and local 
taxes on the amount of a cancelled or postponed debt. You should 
consult your tax advisor. Neither we, nor our administrator, are able 
to provide you with tax guidance. 

PROGRAM FEE. The program fee is the amount you pay for protection 
under  the  program.  The  rate  used  to  determine  the  program  fee  is 
subject to change. You will receive notice before any increase goes 
into effect. The program fee will be added to the outstanding balance 
each month. 

CHANGING  THE  TERMS  OF  THIS  CONTRACT.  We  have  the  right 
to  change  (including  the  addition  or  deletion  of)  the  terms  of  this 
contract  and  apply  those  changes  to  the  outstanding  balance.  You 
will receive notice before any change goes into effect. Your continued 
payment  of  the  program  fee  will  constitute  your  acceptance  of  the 
change  in  terms.  You  have  the  right  to  cancel  this  contract  at  any 
time.

CHANGING  BETWEEN  OPTIONS.  If  you  change  from  one  program 
option (the “prior program option”) to a different program option (the 
“current program option”), and an event occurs that does not qualify 
for protection under the current program option because of the new 
effective  date  of  protection,  we  will  recognize  the  continuous  time 
protected for a speciﬁ c event under both program options. However, 
the level of protection available will be the lesser of: 
a. The protection that would be provided under the current program 
option if the effective date of protection was adjusted to be the same 
as the effective date of protection under the prior program option; or 
b.  The  protection  that  would  have  been  provided  under  the  prior 
program option if it had remained in effect. 

TERMINATION OF THE PROGRAM. You may terminate this program 
contract  at  any  time  by  providing  us  with  written  notice  at  least  5 

26

business days prior to the requested termination date. If you do so 
within 30 days of enrolling in program, we will credit the outstanding 
balance for any fees charged for the program. Your protection under 
the program will automatically terminate: 
a. When you reach age 65. 
b. When any portion of any payment of the loan is past due for 90 
days or more. If you bring your loan current, your protection under 
the program will not be reinstated automatically. You must re-enroll 
to participate in the program. 
c. When you fail to pay the program fee. 
d. For any other reason by giving you written notice at least 30 days 
in  advance  of  the  termination  (or  as  required  by  law.)  Termination 
will  not  affect  beneﬁ ts  for  a  protected  event  that  occurred  prior  to 
the termination date as long as an outstanding balance remains on 
the loan. 

ERRORS AND ADJUSTMENTS. If we cancel or postpone more or less 
than we should have according to the terms of this contract, we will 
adjust the balance when the error is discovered. 
If  we  issued  protection  under  the  program  due  to  our  own  error, 
and  we  recognize  our  error  before  a  protected  event  occurs,  our 
obligation to you is limited to return of any program fee you paid. If 
we recognize our error after a protected event occurs, we will provide 
beneﬁ ts for the protected event that occurred, and we will terminate 
the  program  for  any  future  events  as  of  the  date  we  recognize  our 
error.    However, If you misstated a material fact when enrolling for 
the program that caused us to issue protection under the program 
when we otherwise wouldn’t have, we will return any program fee you 
paid when we discover this, and we will not provide any beneﬁ ts even 
if an otherwise protected event has already occurred. 

WAIVER OF PROVISIONS. We reserve the right to waive any of the 
requirements described in this contract, at our sole discretion. If we 
do  so,  we  will  not  be  obligated  to  waive  the  same  requirements  in 
any other situation and our waiver will not constitute a waiver of any 
other requirements. 

CONTINUED  EFFECTIVENESS.  If  any  part  of  this  contract  is 
determined to be unenforceable, the rest will remain in effect. 

3. PROTECTED EVENTS 
A loan is protected according to the terms of this contract if you are 
enrolled for the speciﬁ ed program protection and you have paid the 
applicable program fee. Option 1, Option 2, Option 3, Option 4 and 
Option 5: apply to Consumer and Home Equity loans. Option 2 and 
Option 5: apply to Visa. 

LOSS OF LIFE (Included with Option 1, Option 2, Option 3 and 
Option 5) If you die, we will cancel 100% of the loss of life amount.
VISA Loans: For each protected borrower, the loss of life amount 
is the lesser of the protected balance or $50,000 for Option 2 and 
Option 5. 
Consumer Loans: For each protected borrower, the loss of life 
amount is the lesser of the protected balance or $50,000 for 
Option 1, Option 2, Option 3 and Option 5.
Home Equity Loans: For each protected borrower, the loss of life 

27

amount is the lesser of the protected balance or $100,000 for 
Option 1, Option 2, Option 3 and Option 5.

DISABILITY (Included with Visa Loan Option 2 and with Consumer 
Loan and Home Equity Loan Option 1, Option 2, Option 3 and Option 
4) Disability means that you are: 
a. Unable to engage in the signiﬁ cant duties of your occupation 
for at least 30 consecutive days due to an accidental injury or a 
sickness; 
b. Under the regular care and treatment of a physician; and 
c.  Not  working  at  any  job,  or  combination  of  jobs,  paying  you  an 
income equal to or exceeding 80% of the wages you were earning 
from your full-time employment immediately preceding the date you 
became disabled. 
If you are employed full-time and become disabled, we will cancel the 
daily payment for each day that you are disabled: 
a. Beginning with the 31st day of disability; 
b.  For  the  next  12  months  or  until  the  entire  protected  balance  is 
cancelled, but not more than $12,000 per period of disability. 

UNEMPLOYMENT (Included with Visa Loan Option 2 and Consumer 
Loan and Home Equity Loan Option 1, Option 2 and Option 4) 
Involuntary  unemployment  means  that  for  at  least  30  consecutive 
days you are not working at any job, or any combination of jobs for 
25 hours or more per week and that you are actively seeking full-time 
employment. This includes honorable discharge from active military 
service by the United States Armed Forces. Involuntary unemployment 
does not include any annual, regularly scheduled, or seasonal layoff 
or any period of unemployment that occurs while you are a temporary 
employee,  independent  contractor,  self-employed,  or  employed  by 
a  joint  borrower.  It  also  does  not  include  any  retirement,  vacation, 
strike,  unionized  labor  dispute,  lockout,  sabbatical,  family  leave, 
disability,  termination  due  to  your  willful  or  criminal  misconduct, 
resignation  by  agreement  with  your  employer,  voluntary  furlough, 
voluntary unemployment or voluntary loss of wages. 
If you are employed full-time and become involuntarily unemployed, 
we will cancel the daily payment for each day that you are involuntarily 
unemployed: 
a. Beginning with the 31st day of involuntary unemployment; 
b.  For  the  next  3  months  or  until  the  entire  protected  balance  has 
been cancelled, but not more than $1,500 per period of involuntary 
unemployment. 

We will initially require proof that you have received federal, state, or 
railroad unemployment beneﬁ ts for the period of unemployment to 
determine if you meet the deﬁ nition of involuntarily unemployed. You 
must provide evidence of your continued involuntary unemployment 
each month by demonstrating your continued registration with a state 
unemployment ofﬁ ce or a recognized employment agency. 

FAMILY LEAVE (Included with Consumer Loan and Home Equity Loan 
Option 1, excludes Visa loans) Family leave means that you take an 
unpaid leave of absence from your full-time employment for at least 
30 consecutive days, with your employer’s written approval, to attend 
to the needs of your newborn, newly adopted or foster child, or to 
care  for  a  spouse,  child  or  parent  with  a  serious  health  condition, 

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as deﬁ ned by the Federal Family and Medical Leave Act. It does not 
include any leave of absence that occurs while you are a temporary 
employee, independent contractor, self-employed, or employed by a 
joint borrower. 
If you are employed full-time and take a family leave, we will cancel 
the daily payment for each day of your family leave: 
a. Beginning with the 31st day of the family leave; 
b.  For  3  months  or  until  the  entire  protected  balance  has  been 
cancelled, but not more than $1,500 per period of family leave. 

4. NON-PROTECTED EVENTS FOR CONSUMER, HOME EQUITY AND 
VISA, UNLESS OTHERWISE NOTED
An advance is not protected by the program if the event: 
a. Is due to the commission of a felony. 
b.  Is  caused  by  or  results  from  an  atomic  explosion  or  any  other 
release  of  nuclear  energy  (except  when  used  solely  for  medical 
treatment). 

Additional non-protected events are speciﬁ ed below. 

An advance is not protected by Loss of Life protection if the event: 
a.  Occurs  within  the  6  months  immediately  following  the  effective 
date  of  protection  for  the  advance,  and  is  related  to  a  pre-existing 
condition  for  which  you  received  advice,  diagnosis,  or  treatment 
(including  medication)  within  the  6  months  immediately  preceding 
the effective date of protection for the advance. 
b. Is the result of a suicide or an intentionally self-inﬂ icted injury that 
occurs within the 12 months immediately following the effective date 
of protection for the advance. 
c. Occurs on or after age 65. 

An advance is not protected by Disability protection if the event: 
a.  Occurs  within  the  6  months  immediately  following  the  effective 
date  of  protection  for  the  advance,  and  is  related  to  a  pre-existing 
condition  for  which  you  received  advice,  diagnosis,  or  treatment 
(including  medication)  within  the  6  months  immediately  preceding 
the effective date of protection for the advance. 
b. Is related to normal pregnancy. 
c. Is due to an intentionally self-inﬂ icted injury. 
d. Occurs on or after age 65. 

An  advance  is  not  protected  by  Unemployment  protection  if  the 
event: 
a.  Occurs  within  the  6  months  immediately  following  the  effective 
date of protection for the advance. 
b. Is due to an intentionally self-inﬂ icted injury. 
c. Occurs on or after age 65. 

For Consumer and Home Equity loans an advance is not protected by 
Family Leave protection if the event: 
a.  Occurs  within  the  6  months  immediately  following  the  effective 
date of protection for the advance. 
b. Occurs on or after age 65. 

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5.  CONCURRENT  PROTECTED  EVENTS  If  we  are  canceling  the 
daily payment for one protected event and another protected event 
occurs: 
a. The amount cancelled will be applied to the dollar limitation for the 
ﬁ rst protected event. 
b. We will not cancel more than the daily payment for any one day. 

6.  RECURRENT  EVENTS  If  you  incur  a  claim  for  the  same  type  of 
protected  event  again  within  one  year  after  you  have  recovered  or 
returned  to  work,  we  will  consider  this  a  continuation  of  the  prior 
event. For disability, however, this only applies if you are disabled due 
to the same condition. Any remaining time period available from the 
earlier  protected  event  will  continue  beginning  with  the  date  of  the 
recurrence. If you incur a claim for the same type of protected event 
more  than  one  year  after  recovering  or  returning  to  work,  we  will 
consider it a new protected event. This provision applies whether you 
return to work with the same or a different employer. 

7. STATUS OF THE LOAN AFTER A PROTECTED EVENT During the 
time it takes to process your claim, you remain responsible for making 
at least the minimum payment due on the loan by the payment due 
date. You are responsible for any difference between the minimum 
payment due on the loan and the amount cancelled or postponed. If 
you have a valid claim, we will refund the portion of your payment(s) 
that should have been cancelled or postponed according to the terms 
of this contract. This contract will be governed by the local law of the 
State of Washington. Loan Payment Protection (referred to as “the 
program”) is voluntary and not required in order to obtain credit. We 
will not consider whether or not you elect Loan Payment Protection 
in making our credit decision. 
The program contains certain terms and exclusions. You are eligible 
for  the  program  if  you  are  a  borrower  on  the  loan  and  under  age 
65  on  the  effective  date  of  protection.  The  program  protects  the 
ﬁ rst two borrowers listed on the lending agreement. The protected 
borrower(s) may not qualify for all beneﬁ ts. Your election for Loan 
Payment Protection applies to the open-end credit plan and/or open-
end line of credit (all existing and future subaccounts); will remain in 
effect,  according  to  the  terms  of  the  contract,  unless  subsequently 
modiﬁ ed; and means you authorize the program fee to be added to 
your outstanding balance each month. If your election represents a 
change in the program for an existing loan and the cost of the newly 
elected  protection  results  in  increased  program  fees,  you  agree 
to  increase  your  payment  or  to  make  more  payments  of  the  same 
amount until what you owe has been repaid. 

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Your savings federally insured to at least $250,000
and backed by the full faith and credit of the United States Government

NCUA

National Credit Union Administration, a U.S. Government Agency

WWW.BECU.ORG  |  800-233-2328

PO Box 97050, Seattle, WA 98124-9750