CARDHOLDER AGREEMENT 
This Cardholder Agreement is your contract with us and 
governs the use of your credit card and account. The card 
carrier contains important account information, including 
your credit limit.  Please read and keep these documents 
for your records. 

Facts About Rates and Fees 
For  complete  information  about  these  facts,  please  see 
the related sections in this Cardholder Agreement. 

Rates – Finance Charges 

Purchase APRs: 18.00%. 

Cash Advance APR: 18.00%. 

Minimum  Finance  Charge:  No  minimum  finance 
charge. 

Other Fess 

Late  Payment  Fee:  Lesser  of  $15.00  or  5%  of  the 
payment due. 

Over-the-credit-limit Fee: Up to $15.00 if you opt in. 

Annual Fee: $45.00. 

Returned Payment Fee: Up to $30.00 

Purchases  Made  in  a  Foreign  Currency  Fee:  1%  of 
each purchase after its conversion into U.S. dollars. 

Cash  Advance  Fee:  2%  of  each  cash  advance,  $2.00 
minimum. 

Rates,  fees,  and  terms  may  change:  We  may  change 
the  rates,  fees,  and  terms  of  your  account  or  freeze  or 
decrease  your  credit  line  at  any  time  for  any  reason. 
These  reasons  may  be  based  on  information  in  your 
include 
credit 
competitive  or  market-related  factors.  If  we  make  a 
change for any of these reasons; you will receive written 
notice before the effective date, if required by law. 

reasons  may  also 

report.  These 

Definitions 
Account:  the  relationship  established  between  you  and 
us by this Cardholder Agreement. 

APR: annual percentage rate. 

1 

Authorized  user:  any  person  you  allow  to  use  your 
account. 

Card:  one  or  more  cards  or  other  account  access 
devices, including account numbers that we issue to you 
to obtain credit under this Cardholder Agreement. 

Cardholder  Agreement 
document and the disclosure table. 

(or  Agreement): 

this 

We, us, and our: First National Bank, Edinburg, Texas, 
the issuer of your account. 

You, your, and yours: the person who applied to open 
the  account  and  any  other  person  responsible  for 
complying with this Agreement, including the person to 
whom we address billing statements. 

Your Account 
You  agree  to  use  your  account  in  accordance  with  this 
Agreement.  This  Agreement  is  binding  on  you  unless 
you  cancel  your  account  within  30  days  after  receiving 
the card and you have not used or authorized use of your 
card.  You  must  pay  us  for  all  amounts  due  on  your 
account  as  specified  in  this  Agreement.  Your  account 
must only be used for lawful transactions. 

Authorized  Users:  You  may  allow  authorized  users  to 
use  your  account.  You  may  request  one  additional  card 
for  an  authorized  user.  You  must  pay  us  for  all  charges 
made by authorized users even if you did not intend to be 
responsible  for  those  charges.  You  must  notify  us  to 
revoke any permission you give to an authorized user to 
use a card or to use your account. 

Revolving  Credit  Line:  Your  initial  revolving  credit 
line  appears  on  your  card  carrier.  The  full  amount  of 
your  revolving  credit  line  is  available  to  buy  or  lease 
goods or services where the card is honored. Part of your 
revolving  credit  line,  called  the  cash  advance  limit,  is 
available  for  cash  advances.  We  may  change  your 
revolving credit line or cash advance limit at any time for 
any reason. We will notify you of any change.  

Billing Statement: Your billing statement shows the  
total  balance,  periodic  finance  charges,  fees,  minimum 
amount  due,  and  payment  due  date.  It  also  shows  your 
current  revolving  credit  line;  an  itemized  list  of  current 
charges, payments and credits; a rate summary; and other 
important  information.  We  deliver  a  statement  to  only 
one address. You must notify Customer Service of a  

2 

change in address. If we deem your account uncollectible 
or  institute  collection  proceedings  by  sending  it  to  an 
outside  agency  or  attorney  for  collection,  we  may  stop 
sending  you  statements.  Periodic  finance  charges  and 
fees  continue  to  accrue  even  if  we  stop  sending 
statements. 

The  total  amount  you  owe  us  appears  as  the  New 
Balance on the billing statement. To determine the New 
Balance we begin with the total balance at the start of the 
billing  period.  We  add  any  purchases  or  cash  advances 
and  subtract  any  credits  or  payments  credited  as  of  that 
billing period. We then add any periodic finance charges 
or fees. 

APRs 
Promotional APRs: A promotional APR is an APR less 
than  the  APR  on  your  account.  From  time  to  time  the 
bank  may  offer  a  Promotional  APR.  This  Promotional 
APR will remain in effect until the end of the specified 
period  provided  your  account  remains  in  good  standing 
with this agreement. 

Effect of APR Increases: If an APR increases, periodic 
finance  charges  increase  and  your  minimum  payment 
may increase. 

Periodic Finance Charges 
Application  of  Periodic  Finance  Charges:    We  will 
charge periodic Finance Charges on outstanding balances 
as described in this Agreement. Periodic Finance charges 
will  be  applied  to  your  Account  separately  for  each 
billing  cycle  at  a  daily  periodic  rate.  We  calculate 
periodic  finance  charges  separately  for  each  balance 
subject 
terms,  for  example,  standard 
purchases, standard cash advances, and each promotional 
offer.  Your  rates  may  vary.  An  increase  in  the  variable 
APR  for  Purchases  means  you  will  incur  a  higher 
Finance Charge and perhaps a higher minimum payment 
due. 

to  different 

Finance  Charge  Calculation:    The  Finance  Charge  is 
calculated  as  of  the  closing  date  of  a  billing  cycle  by 
multiplying the average daily balance subject to Finance 
Charge times the applicable daily periodic rate, and then 
multiplying  that  amount  by  the  number  of  days  in  the 
billing  cycle.    The  daily  periodic  rate  is  the  applicable 
APR  divided  by  three  hundred  sixty  five  (365).    The 
average  daily  balance  subject  to  Finance  Charge  is 
calculated  for  a  billing  cycle  by  adding  together  the 
ending outstanding balances subject to Finance Charge  

3 

for  each  day  included  in  the  billing  cycle,  and  then 
dividing that figure by the number of days in the billing 
cycle.    The  ending  outstanding  balance  subject  to 
Finance  Charge  for  a  day  is  calculated  by  taking  the 
previous  day’s  ending  outstanding  balance  subject  to 
Finance  Charge,  adding  any  new  purchases,  balance 
transfers  and  cash  advances  which  were  posted  to  the 
Account  as  of  that  day,  subtracting  any  portions  of 
payments or credits posted to the Account as of that day 
that  were  allocated  to  purchases,  balance  transfers  and 
cash advances, and making any adjustments.  A negative 
balance will be treated as a zero balance.  

In  calculating  the  average  daily  balance  subject  to 
Finance  Charge  for  a  particular  billing  cycle,  we  will 
exclude new purchases and balance transfers posted as of 
a  day  during  that billing  cycle  (but  we  will  not  exclude 
those  purchases  and  balance  transfers  for  purposes  of 
calculating the average daily balance subject to Finance 
Charge  for  any  subsequent  billing  cycle)  if  you  had  a 
zero  balance  (that  is,  no  credit  outstanding  on  your 
Account) at the beginning of the particular billing cycle, 
or if  you paid the entire new balance that existed at the 
end of the billing cycle previous to the particular billing 
cycle (as stated on the periodic billing statement for that 
previous  billing  cycle)  in  time  to  be  credited  as  of  the 
Payment  Due  Date  specified  on  the  periodic  billing 
statement for that previous billing cycle. Your Payment  
Due  Date  for  a  billing  cycle  will  never  be  less  than  25 
days after the last day in that billing cycle.  Otherwise all 
purchases  and  balance  transfers  will  be  included  in  the 
calculation  of  the  average  daily  balance  subject  to 
Finance Charge.  In all cases, cash advances will begin to 
accrue  a  Finance  Charge  from  the  date  as  of  which  the 
cash advance is posted to your Account.  

A  purchase  may  be  posted  to  the  Account  as  of  the 
earlier  of  (a)  the  day  on  which  the  merchant  placed  the 
charge  on  your  Card,  or  (b)  the  purchase  transaction 
occurred.    A  balance  transfers  may  be  posted  to  the 
account  as  of  the  date  the  transaction  posted.  A  cash 
advance may be posted to the Account as of the day on 
which the cash advance transaction occurred.  

We  may  use  mathematical  formulas 
that  produce 
equivalent results to calculate your average daily balance 
subject  to  Finance  Charge,  your  periodic  Finance 
Charges,  and  related  amounts.    For  example,  we  may 
utilize  computer  programs  or  other  computational 
methods  that  are  designed  to  produce  mathematically 
equivalent results while using fewer, different, and/or  

4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
simpler  computational  steps  than  are  described  in  this 
Agreement.    In  our  sole  discretion,  we  may  round  or 
truncate any figures used in calculating periodic Finance 
Charges.    Such  rounding  or  truncation  may  apply  to  or 
cause variations in your periodic rates and APRs.  

Other Fees 
Purchases Made in a Foreign Currency Fee: For each 
purchase  made  in  a  foreign  currency  we  may  charge  a 
fee  of  1%  of  the  purchase  amount  after  its  conversion 
into U.S. dollars. 

Cash  Advance  Fee:  You  obtain  a  cash  advance  if  you 
obtain  funds  through  an  automated  teller  machine 
(ATM),  convenience  check,  home  banking,  or  financial 
institution;  make  a  wire  transfer;  obtain  a  money  order, 
traveler's  check,  lottery  ticket,  casino  chip,  or  similar 
item;  or  engage  in  a  similar  transaction.  For  each  cash 
advance we may charge a fee of 2% of the amount of the 
cash advance, but not less than $2.00. 

Late Payment Fee: We may charge a fee whenever you 
have failed to pay a minimum amount due in time to be 
credited  as  of  ten  (10)  days  after  its  payment  due  date. 
This fee is the lesser of $15 or 5% of the payment due. 

Over-the-credit-limit  Fee:  Funds  will  not  be  advanced 
over  the  credit  limit  unless  you  opt  in  for  this  service. 
Once  you  opt  in  we  may  change  a  fee  on  the  first 
transaction causing the over the limit and for each billing 
cycle  in  which  your  new  balance  at  the  close  of  the 
billing  cycle  exceeds  your  credit  limit.  We  may  impose 
the  fee  even  if  we  authorize  a  transaction,  or  impose  a 
fee  or  charge,  that  causes  your  new  balance  to  exceed 
your credit limit. The fee is up to $15.00. 

Annual Fee: We may charge an annual fee if applicable. 
This fee is non-refundable unless you notify us to cancel 
your  account  within  30  days  of  the  mailing  or  delivery 
date of the billing statement on which the fee is billed. 

Returned  Item  Fee:  We  may  charge  a  fee  of  up  to 
$30.00  if  a  payment  check,  convenience  check,  balance 
transfer transaction or  similar instrument is not honored 
or  is  returned  because  it  cannot  be  processed  or  if  an 
automatic debit is returned unpaid. We assess this fee the 
first time your check or payment is not honored, even if 
it is honored upon resubmission. 

Replacement Card Fee: We may charge a fee of $5.00 
whenever we issue a replacement for a card that was lost  
5 

or stolen, or change an account number because of a lost 
or stolen card, or the card was damaged. 

Copy Fee: We may charge a fee of $5.00 for providing 
copies  of  account  statements,  and  other  documents 
unless prohibited by law. 

Stop  Payment  Fee:  We  may  charge  a  fee  of  $30.00  if 
we  stop  payment  on  a  convenience  check  or  balance 
transfer transaction at your request. 

Credit Card Rush Order Fee: We may charge a fee of 
$30.00 when rush order is requested.  

Pay-by-phone Fee: We may charge a fee of $10.00 if a 
payment is made over the phone. 

Information on Foreign Currency 
Conversion Procedures 
If  you  make  a  transaction  in  a  foreign  currency  Visa® 
converts the amount into U.S. dollars as follows: 
Visa  complies  with  its  foreign  currency  conversion 
procedures 
in  effect.  Visa  currently  uses  a 
conversion  rate  in  effect  on  its  applicable  central 
processing date. Such rate is either a rate it selects from 
the  range  of  rates  available  in  wholesale  currency 
markets, which may vary from the rate it receives, or the 
government-mandated rate. 

then 

 The  foreign  currency  conversion  rate  in  effect  on  the 
applicable  processing  date  for  a  transaction  may  differ 
from  the  rate  in  effect  on  the  sale  or  post  date  on  your 
billing statement for that transaction. 

If a transaction is converted by a third party prior to such 
transaction being processed by Visa, the foreign currency 
conversion  rate  for  that  transaction  will  be  the  rate 
selected by that third party. 

Payments 
Minimum  Amount  Due:  Each  month  you  must  pay  at 
least  the  Minimum  Amount  Due  by  the  payment  due 
date. The sooner you pay the New Balance, the less you 
will pay in periodic finance charges. 

To calculate the Minimum  Amount Due, we begin with 
amount in excess of your revolving credit line. We then 
add  3%  of  the  New  Balance  (which  calculation  is 
rounded  down  to  the  nearest  dollar)  plus  the  amount  of 
your  billed  finance  charges.  The  minimum  payment  is 
rounded to the next highest whole dollar amount. If the  

6 

minimum  payment  calculation  results  in  $20.00  or  less, 
the  minimum  payment  will  be  $20.00.  If  the  New 
Balance  is  $20.00  or  less,  the  Minimum  Amount  Due 
will  be  the  New  Balance.  In  calculating  the  Minimum 
Amount  Due,  we  will  not  include  any  amount  that  is 
related to a charge that you are disputing. 

Application of Payments: If your account has balances 
with  different  APRs,  we  will  allocate  payment  amounts 
in  excess  of  your  Total  Minimum  Payment  Due  to 
balances  with  higher  APRs  before  balances  with  lower 
APRs. 

Payment  Instructions:  Payments  are  credited 
in 
accordance  with  the  payment  instructions  on  the  billing 
statement.  You  must  pay  us  in  U.S.  dollars  using  a 
check,  similar  instrument,  or  automatic  debit  that  is 
drawn on and honored by a bank in the U.S. Do not send 
cash.  We  can  accept  late  or  partial  payments,  and 
payments  that  reflect  “paid  in  full”  or  other  restrictive 
endorsements, without losing our rights. We reserve the 
right  to  accept  payments  made  in  foreign  currency  and 
instruments  drawn  on  funds  on deposit  outside  the  U.S. 
If  we  do,  we  select  the  currency  conversion  rate  at  our 
discretion  and  credit  your  account  in  U.S.  dollars  after 
in  processing  your 
incurred 
deducting  any  costs 
payment, or we may bill you separately for such costs. 

Credit Reporting 
We may report information about your account to credit 
reporting agencies. Late payments, missed payments, or  
other defaults on your account may appear on your credit 
report.  If  you  request  cards  on  your  account  for  others, 
we may report account information in the names of those 
other  people  as  well.  We  may  also  obtain  follow-up 
credit reports on you (for example, when we review your 
account for a revolving credit line increase). If you wish 
to  know  which  agencies  we  contacted,  write  us  at  the 
Customer Service address on the billing statement. 
If  you  think  we  reported  erroneous  information  to  a 
credit reporting agency, write us at the Customer Service 
address  on  the  billing  statement.  We  will  promptly 
investigate the matter and if we agree with you, we will 
contact  each  credit  reporting  agency  to  which  we 
reported  and 
If,  after  our 
request  a  correction. 
investigation,  we  disagree  with  you,  we  will  tell  you  in 
writing  or  by  telephone  and  tell  you  how  to  submit  a 
statement  to  those  agencies  for  inclusion  in  your  credit 
report.                                                                               
Changes To This Agreement 

We may change the rates, fees, and terms of this  

7 

Agreement at any time for any reason. These reasons 
may  be  based  on  information  in  your  credit  report, 
such  as  your  failure  to  make  payments  to  another 
creditor when due, amounts owed to other creditors, 
the  number  of  credit  accounts  outstanding,  or  the 
number  of  credit  inquiries.  These  reasons  may  also 
factors. 
include  competitive  or  market-related 
Changing  terms 
includes  adding,  replacing,  or 
deleting  provisions  relating  to  your  account  and  to  
the nature, extent, and enforcement of the rights and 
obligations  your  or  we  have  relating 
this 
Agreement.  These  changes  are  binding  on  you. 
However,  if  the  change  will  cause  a  fee,  rate  or 
minimum  payment  to  increase,  we  will  mail  you 
written  notice  45  days  before  the  beginning  of  the 
billing period in which the change  becomes effective. 
If you do not agree to the change, you must notify us 
in  writing  within  25  days  after  the  effective  date  of 
the  change  and  pay  us  the  total  balance,  either  at 
once  or  under 
the  unchanged 
Agreement.   Unless  we  notify  you  otherwise,  use  of 
the card after the effective date of the change shall be 
deemed  acceptance  of  the  new  terms,  even  if  the  25 
days have not expired. 

terms  of 

the 

to 

Default 
You  default  under  this  agreement  if  you  fail  to  pay  the 
Minimum  Amount  Due  by  its  date;  pay  by  a  check  or 
similar  instrument  that  is  not  honored  or  that  we  must 
return because it cannot be processed; pay by automatic 
debit  that  is  returned  unpaid;  file  for  bankruptcy;  or 
default  under  any  other  Card  Agreement  that  you  have 
with  us.  If  you  default,  we  may  close  your  account  and 
demand  immediate  payment  of  the  total balance.  If  you 
gave us a security interest in a  Certificate of Deposit or 
Savings Account, we may use the deposit amount to pay 
any amount you owe. 

Refusal of the Card, Closed Accounts, and Related 
Provisions 
Refusal  of the  Card: We do not guarantee  approval of 
transactions  and  are  not  liable  for  transactions  that  are 
not approved, either by us or by a third party, even if you 
have  sufficient  credit  available.  We  may  limit  the 
number of transactions that may be approved in one day. 
If  we  detect  unusual  or  suspicious  activity,  we  may 
suspend  your  credit  privileges  until  we  can  verify  the 
activity.  All  internet  gambling  transactions  will  be 
declined.  We  may  also  block  certain  merchants, 
merchant  groups,  countries  or  other  organizations  if 
deemed necessary for security reasons.  

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preauthorized  Charges:  If  you  default,  if  the  card  is 
lost or stolen, or we change your account for any reason, 
we  may  suspend  automatic  charges  with  third  party 
vendors. If preauthorized charges are suspended, you are 
responsible  for  making  direct  payment  for  such  charges 
until  you  contact  the  third  party  to,  reinstate  the 
automatic charges. 

Lost  or  Stolen  Cards,  Account  Numbers,  or 
Convenience  and  Balance  Transfer  Checks:  If  any 
card, account number, or check is lost or stolen or if you 
them  without 
think  someone  used  or  may  use 
permission,  call  us  at  the  Customer  Service  number  on 
the  billing  statement  or  the  back  of  the  card.  We  may 
require  you  to  provide  certain  information  in  writing  to 
help us find out what happened and to comply with our 
investigation.  You  must  identify  for  us  the  charges  that 
were  not  made  by  you,  or  someone  authorized  by  you, 
and from which you received no benefit. 

Closing Your Account: You may close your account by 
notifying  us  in  writing  or  by  calling  toll-free  at  the 
Customer Service number shown on the billing statement 
or  on  the  back  of  your  credit  card,  but  must  still  repay 
the total balance in accordance with this Agreement. We 
may close your account or suspend account privileges at 
any  time  for  any  reason  without  prior  notice.  We  may 
also reissue a different card at any time. You must return  
any card to us upon request. 

Security  Interest  for  Secured  Accounts:  If  your 
account  is  a  secured  account,  you  gave  us  a  security 
interest in a Certificate of Deposit or savings account to 
secure repayment of your account. If you withdraw your 
funds from the Certificate of Deposit or savings account, 
we will close your account. 

ARBITRATION. 

Arbitration 
PLEASE  READ  THIS  PROVISION  OF  THE 
AGREEMENT  CAREFULLY. 
IT  PROVIDES 
THAT  ANY  DISPUTE  MAY  BE  RESOLVED  BY 
BINDING 
ARBITRATION 
REPLACES  THE  RIGHT  TO  GO  TO  COURT, 
INCLUDING  THE  RIGHT  TO  A  JURY  AND  THE 
RIGHT  TO  PARTICIPATE  IN  A  CLASS  ACTION 
OR  SIMILAR  PROCEEDING.  IN  ARBITRATION, 
A DISPUTE IS RESOLVED BY AN ARBITRATOR 
INSTEAD  OF 
JURY. 
ARBITRATION  PROCEDURES  ARE  SIMPLER 
THAN  COURT 
AND  MORE 
PROCEDURES. 

JUDGE  OR 

LIMITED 

A 

9 

Agreement  to  Arbitrate:  Either    you  or  we  may,  
without  the  other's  consent,  elect  mandatory,  binding 
arbitration  for  any  claim,  dispute,  or  controversy 
between you and us (called “Claims”). 

the 

application, 

enforceability, 

Claims Covered 
What  Claims  are  subject  to  arbitration?  All  Claims 
relating  to  your  account,  a  prior  related  account,  or  our 
relationship  are  subject  to  arbitration,  including  Claims 
regarding 
or 
interpretation  of  this  Agreement  and  this  arbitration 
provision. All Claims are subject to arbitration, no matter 
what  legal  theory  they  are  based  on  or  what  remedy 
(damages,  or  injunctive  or  declaratory  relief)  they  seek. 
This  includes  Claims  based  on  contract,  tort  (including 
intentional  tort),  fraud,  agency,  your  or  our  negligence, 
statutory  or  regulatory  provisions,  or  any  other  sources 
of  law;  Claims  made  as  counterclaims,  cross-claims, 
third-party  claims, 
interpleaders  or  otherwise;  and 
Claims made independently or with other claims. A party 
who initiates a proceeding in court may elect arbitration 
with  respect  to  any  Claim  advanced  in  that  proceeding 
by  any  other  party.  Claims  and  remedies  sought  as  part 
of  a  class  action,  private  attorney  general  or  other 
representative  action  are  subject  to  arbitration  on  an 
individual  (non-class,  non-representative)  basis,  and  the 
arbitrator  may  award  relief  only  on  an  individual  (non-
class, non-representative) basis. 

arbitration,  so  long  as  the  matter  remains  in  such  court 
individual  (non-class,  non-
and  advances  only  an 
representative) Claim. 

How Arbitration Works 
How does a party initiate arbitration? The party filing 
an  arbitration  must  choose  one  of  the  following  two 
arbitration firms and follow its rules and procedures for 
initiating  and  pursuing  an  arbitration:  American 
Arbitration  Association  or  National  Arbitration  Forum. 
Any arbitration hearing that you attend will be held at a 
place  chosen  by  the  arbitration  firm  in  the  same  city  as 
the  U.S.  District  Court  closest  to  your  then  current 
billing address, or at some other place to which you and 
we  agree  in  writing.  You  may  obtain  copies  of  the 
current  rules  of  each  of  the  arbitration  firms  and  forms 
and instructions for initiating an arbitration by contacting 
them as follows: 

American Arbitration Association 
335 Madison Avenue, Floor 10 
New York, NY 10017-4605 
Web site: www.adr.org 

National Arbitration Forum 
P.O. Box 50191 
Minneapolis, MN 55405 
Web site: www.arbitration-forum.com 

Whose  Claims  are  subject  to  arbitration?  Not  only 
ours  and  yours,  but  also  Claims  made  by  or  against 
anyone connected with us or you or claiming through us 
or you, such as a co-applicant or authorized user of your 
account,  an  employee,  agent,  representative,  affiliated 
company,  predecessor  or  successor,  heir,  assignee,  or 
trustee in bankruptcy. 

What  time  frame  applies  to  Claims  subject  to 
arbitration?  Claims  arising  in  the  past,  present,  or 
future,  including  Claims  arising  before  the  opening  of 
your account, are subject to arbitration. 

Broadest  interpretation.  Any  questions  about  whether 
Claims  are  subject  to  arbitration  shall  be  resolved  by 
interpreting this arbitration provision in the broadest way 
the  law  will  allow  it  to  be  enforced.  This  arbitration 
provision is governed by the Federal Arbitration Act (the 
“FAA”). 

What  about  Claims  filed  in  Small  Claims  Court? 
Claims filed in a small claims court are not subject to  

10 

At  any  time  you  or  we  may  ask  an  appropriate  court  to 
compel arbitration of Claims, or to stay the litigation of 
Claims pending arbitration, even if such Claims are part 
of a lawsuit, unless a trial has begun or a final judgment 
has  been  entered.  Even  if  a  party  fails  to  exercise  these 
rights  at  any  particular  time,  or  in  connection  with  any 
particular  Claims,  that  party  can  still  require  arbitration 
at a later time or in connection with any other Claims. 

law  are  applicable 

What  procedures  and 
in 
arbitration?    A  single,  neutral  arbitrator  will  resolve 
Claims.  The  arbitrator  will  be  either  a  lawyer  with  at 
least  ten  years  experience  or  a  retired  or  former  judge, 
selected  in  accordance  with  the  rules  of  the  arbitration 
firm. The arbitration will follow procedures and rules of 
the arbitration firm in effect on the date the arbitration is 
filed  unless  those  procedures  and  rules  are  inconsistent 
with this Agreement, in which case this Agreement will 
prevail.  Those  procedures  and  rules  may  limit  the 
discovery available to you or us. The arbitrator will take 
reasonable steps to protect customer account information 
and other confidential information if requested to do so  

11 

by  you  or  us.  The  arbitrator  will  apply  applicable 
substantive  law  consistent  with  the  FAA  and  applicable 
statutes  of  limitations,  will  honor  claims  of  privilege 
recognized at law, and will have the power to award to a 
party  any  damages  or  other  relief  provided  for  under 
applicable law. You or we may choose to have a hearing 
and be represented by counsel. The arbitrator will make 
any award in writing and, if requested by you or us, will 
provide  a  brief  statement  of  the  reasons  for  the  award. 
An  award  in  arbitration  shall  determine  the  rights  and 
obligations between the named parties only, and only in 
respect  of  the  Claims  in  arbitration,  and  shall  not  have 
any  bearing  on  the  rights  and  obligations  of  any  other 
person, or on the resolution of any other dispute. 

Who pays? Whoever files the arbitration pays the initial 
filing fee. If we file, we pay; if you file, you pay, unless 
you  get  a  fee  waiver  under  the  applicable  rules  of  the 
arbitration firm. If you have paid the initial filing fee and 
you prevail, we will reimburse you for that fee. If there is 
a  hearing,  we  will  pay  any  fees,  of  the  arbitrator  and 
arbitration firm for the first day of that hearing. All other 
fees  will  be  allocated  as  provided  by  the  rules  of  the 
arbitration  firm  and  applicable  law.  However,  we  will 
advance or reimburse your fees if the arbitration firm or 
arbitrator  determines  there  is  good  reason  for  requiring 
us  to  do  so,  or  if  you  ask  us  and  we  determine  there  is 
good  reason  for  doing  so.  Each  party  will  bear  the 
expense of that party's attorneys, experts, and witnesses,  
and  other  expenses,  regardless  of  which  party  prevails, 
but a party may recover any or all expenses from another 
party  if  the  arbitrator,  applying  applicable  law,  so 
determines. 

Who  can  be  a  party?  Claims  must  be  brought  in  the 
name of an individual person or entity and must proceed 
on  an  individual  (non-class,  non-representative)  basis. 
The arbitrator will not award relief for or against anyone 
who is not a party. If  you or we require arbitration of a 
Claim, neither you, we, nor any other person may pursue 
the Claim in arbitration as a class action, private attorney 
general  action  or  other  representative  action,  nor  may 
such  Claim  be  pursued  on  your  or  our  behalf  in  any 
litigation  in  any  court.  Claims,  including  assigned 
Claims,  of  two  or  more  persons  may  not  be  joined  or 
same  arbitration.  However, 
consolidated 
applicants,  co-applicants,  authorized  users  on  a  single 
account  and/or  related  accounts,  or  corporate  affiliates 
are here considered as one person. 

the 

in 

When is an arbitration award final? The arbitrator's  

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
award  is  final  and  binding  on  the  parties  unless  a  party 
appeals it in writing to the arbitration firm within fifteen 
days  of  notice  of  the  award.  The  appeal  must  request  a 
new arbitration before a panel of three neutral arbitrators 
designated  by  the  same  arbitration  firm.  The  panel  will 
consider  all  factual  and  legal  issues  anew,  follow  the 
same  rules  that  apply  to  a  proceeding  using  a  single 
arbitrator,  and  make  decisions  based  on  the  vote  of  the 
majority.  Costs  will  be  allocated  in  the  same  way  they 
are allocated for arbitration before a single arbitrator. An 
award by a panel is final and binding on the parties after 
fifteen  days  has  passed.  A  final  and  binding  award  is 
subject  to  judicial  review  and  enforcement  as  provided 
by the FAA or other applicable law. 

in 

the  Agreement, 

the  account,  or 

Survival and Severability of Terms 
This arbitration provision shall survive: (i) termination or 
changes 
the 
relationship between you and us concerning the account; 
(ii)  the  bankruptcy  of  any  party;  and  (iii)  any  transfer, 
sale or assignment of your account, or any amounts owed 
on  your  account,  to  any  other  person  or  entity.  If  any 
portion of this arbitration provision is deemed invalid or 
unenforceable,  the  entire  arbitration  provision  shall  not  
remain in force.  No portion of this arbitration provision 
may  be  amended,  severed  or  waived  absent  a  written 
agreement between you and us. 

Applicable Law and Enforcing our Rights 

Applicable Law: The terms and enforcement of this 
Agreement shall be governed by federal law and the law 
of Texas, where we are located. 

Enforcing  this  Agreement:  We  can  delay  in  enforcing 
or fail to enforce any of our rights under this Agreement 
without losing them, 

Collection Costs: If we refer collection of your account 
to  a  lawyer  who  is  not  our  salaried  employee,  you  are 
liable  for  any  reasonable  attorney's  fees  we  incur,  plus 
the costs and expenses of any legal action, to the extent 
permitted by law. 

Assignment: We may assign any or all of our rights and 
obligations under this Agreement to a third party. 

For Further Information 
Call  the  toll-free  Customer  Service  telephone  number 
shown  on  the  billing  statement  or  on  the  back  of  your 
card.  You  can  also  call  local  or  toll-free  Directory 
Assistance to get our telephone number. 

13 

First National Bank 
Credit Card Department 
P. O. Box 2049 
Edinburg, TX 78540-2049 

What To Do If There's An Error In Your Bill 
Your  Billing  Rights.  Keep  This  Notice  For  Future 
Use.    This  notice  contains  important  information  about 
your rights and our responsibilities under the Fair Credit 
Billing Act. 

Notify Us In Case of Errors or Questions About Your 
Bill.  If  you  think  your  billing  statement  is  wrong,  or  if 
you  need  more  information  about  a  transaction  on  your 
billing  statement,  write  to  us  (on  a  separate  sheet)  as 
soon as possible at the address listed on your statement. 
We  must  hear  from  you  no  later  than  60  days  after  we 
sent  you  the  first  statement  on  which  the  error  or 
problem  appeared.  You  can  telephone  us,  but  doing  so 
will not preserve your rights. 

In your letter, give us the following information: 

•  Your name and account number. 

•  The dollar amount of the suspected error. 

•  Describe the error and explain, if you can, why you 

believe there is an error. If you need more 
information, describe the item you are unsure about. 

•  Please sign your letter. 

If  you  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 at 
least three business days before the automatic payment is 
scheduled to occur. 

Your Rights and Our Responsibilities After 
We Receive Your Written Notice. 

We must acknowledge your letter within 30 days, unless 
we have corrected the error by then. Within 90 days, we 
must  either  correct  the  error  or  explain  why  we  believe 
your billing statement was correct. After we receive your 
letter, we cannot try to collect any amount you question, 
or report your account as delinquent. We can continue to 
bill you for the amount you, question, including finance 
charges,  and  we  can  apply  any  unpaid  amount  against 
your credit line. You do not have to pay any questioned  

14 

amount  while  we  are  investigating,  but  you  are  still 
obligated to pay the parts of your balance that are not in 
question.  If  we  find  that  we  made  a  mistake  on  your 
billing  statement,  you  will  not  have  to  pay  any  finance 
charges  related  to  any  questioned  amount.  If  we  didn't 
make  a  mistake,  you  may  have  to  pay  finance  charges, 
and  you  will  have  to  make  up  any  missed  payments  on 
the questioned amount. In either case, we will send you a 
statement of the amount you owe and the date it is due. 

If you fail to pay the amount that we think you owe, we 
if  our 
may  report  you  as  delinquent.  However, 
explanation  does  not  satisfy  you  and  you  write  to  us 
within 10 days telling us that you still refuse to pay, we 
must  tell  anyone  we  report  you  to  that  you  have  a 
question about your bill. And, we must tell you the name 
and  address  of  anyone  to  whom  we  reported  your 
account information. We must tell anyone we report you 
to that the matter has been settled between us when it is 
finally settled. 

If we don't follow these rules, we can't collect the first 
$50  of  the  questioned  amount,  even  if  your  billing 
statement was correct. 

Special Rule for Credit Card Purchases. 

If  you  have  a  problem  with  the  quality  of  property  or 
services  that  you  purchased  with  a  credit  card,  and  you 
have  tried  in  good  faith  to  correct  the  problem  with  the 
merchant,  you  may  have  the  right  not  to  pay  the 
remaining amount due on the property or services. There 
are two limitations on this right: 

•  You must have made the purchase in your home state 
or, if not within your home state, within 100 miles of 
your current address; and 

•  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. 

Disclosure Table 

Rate, Fee and other  
Cost Information 

FNB Platinum Credit Card 

Interest Rates and Interest Charges 
Annual Percentage  
Rate (APR) for 
purchases, balance 
transfers and cash 
advances 

18.00% fixed. 

How to avoid 
paying Interest     
on purchases 

For credit card tips 
from the Federal 
Reserve Board 

Fees 
Annual Fee 
Transaction Fees 

• Cash Advance Fee 

• Foreign Transaction 

Penalty Fees 

Your due date is at least 25 
days after the close of each 
billing cycle. We will not charge 
you any interest on purchases 
if you pay your entire balance 
by the due date each month.                          
To learn more about factors to 
consider when applying for or 
using a credit card, visit the 
website of the Federal Reserve 
Board at http://www.federal              
reserve.gov/creditcard.                          

$45.00 

2% of the cash advance,  
$2.00 minimum 

1% of each transaction in U.S. 
dollars 

• Late Payment 

Up to $15.00 

• Over-the-credit Limit 

Up to $15.00 

• Returned Payment 

Up to $30.00 

Other Fees 

• Lost / Stolen /   
  Replacement Card  
  Fee 

15 

• Rush Order Fee 

• Copy Fee 

• Pay-by-Phone Fee 

$5.00 

$30.00 

$5.00 

$10.00 

How we will calculate your balance: We use a method 
called “average daily balance (including new purchases)” 

The information about the costs of the card described in 
this application is accurate as of March 22, 2011.  

VPL-003, VPL-004, VPL-005 
16